Aas QUESTION 1 The information regarding the activities of lion ine and the commercial goods it trades is as follows Unit Sales Price 100 Unit Buying Price: 34 Unit Sales Premium 6 Annual Rent Cost 150.000 Annual Salaries 350.000 Annual Advertisement Cost 100.000 1-Calculate the break-even point activity and break-even point sales in Dollars. 2-Calculate how manyunits the business needs to tell in order to earn 20% operating income on sales revenue

To solve this problem, we need to calculate the break-even point in units and sales dollars, as well as determine how many units need to be sold to achieve a 20% operating income on sales revenue.### 1. Break-Even Point Calculation**Break-Even Point in Units:**The break-even point in units is calculated using the formula: Where:- Fixed Costs = Annual Rent Cost + Annual Salaries + Annual Advertisement Cost- Unit Contribution Margin = Unit Sales Price - Unit Buying Price - Unit Sales PremiumFirst, calculate the fixed costs: 350,000 + \ 600,000\]Next, calculate the unit contribution margin: 34 - \ 60\]Now, calculate the break-even point in units: 60} = 10,000 \text{ units}\]**Break-Even Point in Sales Dollars:**The break-even point in sales dollars is calculated by multiplying the break-even point in units by the unit sales price: 1,000,000\]### 2. Units Needed for 20% Operating Income on Sales RevenueTo find out how many units need to be sold to achieve a 20% operating income on sales revenue, we first need to define the desired operating income:Operating Income = 20% of Sales RevenueLet be the number of units sold. Then: Operating Income is also equal to Total Contribution Margin minus Fixed Costs: Equating the two expressions for Operating Income: 600,000\]Simplify and solve for : Therefore, the business needs to sell 15,000 units to earn a 20% operating income on sales revenue.