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1. Last month when Harrison Creations Inc. sold 40000 units total sales were $300000 total variable expenses were $240000 and fixed expenses were $45000.Required:a.What is the company s contribution margin (CM) ratio?b.Estimate the change in the company s net operating income if it were to increase its total sales by $1500.2. [The following information applies to the questions displayed below.]Maxson Products distributes a single product a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company s monthly fixed expense is $5500.Required:a.Compute for the company s break-even point in unit sales using the equation method.b.Compute for the company s break-even point in sales dollars using the equation method and the CM ratio.(Do not round intermediate calculations.Round your CM ratio to 2 decimal places.)CM ratio______________________Break-even point in dollar sales________________________________4. Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month s budget appear below: Selling price$25 per unit Variable expenses$15 per unit Fixed expenses$8500 per month Unit sales1000 units per monthRequired:a.Compute the company s margin of safety.b. Compute the company s margin of safety as a percentage of its sales. (%)

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