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need help with question d.1 that is in brackets

Please note assignments must be completed on a group basis. Each group must consist of 2-3 students. Due date February 26, 2020 at the beginning of class. Late submissions will be assessed a 10% penalty per day and will not be accepted after the assignments have been returned to students or solutions have been posted to Moodle. Mrs. Potts, the president of B & B Products Limited has come to you for assistance as she is worried because sales of Product A have been declining lately. She has provided you with the following information for the sales & expenses of Product A for the year ended January 31, 2020: Sales Cost of goods sold Selling expenses Wares Administrative expenses Advertising expenses 850,000 474,500 125,000 100,000 75,000 25,000 Additional information: - selling expenses are 75% variable & 25% fixed - administrative expenses are 30% variable & 70% fixed - wages and advertising expenses are 100% fixed - the company sold 17,000 units of Product A in the year ended January 31, 2020. Required: (a) Prepare a contribution format income statement for the year ended January 31, 2020. Include per unit & columns (b) Calculate breakeven point both in terms of sales dollars and units. (c) Calculate the margin of safety in dollars & the degree of operating leverage Idl in an effort to try & Improve sales Mrs. Potts is considering the following options: 1. Mrs. Potts feels that if they begin paying their sales people a commission of $2.00 per unit that sales volume will increase by 15% while their fixed costs for wages will decrease by $10,000. 2. Mr. Cogsworth, the sales manager feels that if they decrease the selling price by 10% & increase advertising by $5,000 they will sell an additional 5,000 units Write a memo to Mrs. Potts telling her which option if any you would recommend. Show calculation to support your answer. Mound to 2 decimal places in calculating per unit & % amounts

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