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Draaksh Corporation selis premium quality wine for $85 per bottle. Its direct materials and direct labour costs are $16 and $9.50 respectively per bottle. It pays its direct labour employees a wage of $19 per hour. The company performed a regression analysis using the past 12 months' data and established the following monthly cost equation for manufacturing overhead costs using direct labour-hours as the overhead allocation base: y=$151.700+$20.00x Draaksh believes that the above cost estimates will not substantially change for the next fiscal year. Given the stiff competition the wine market, Draaksh budgeted an amount of $33,400 per month for sales promotions; additionally, it has decided to offer sales commission of $4.50 per bottle to its sales personnel. Administrative expenses are expected to be $24,700 per month. Required: 1. Compute the expected total variable cost per bottle and the expected contribution margin ratio. 2. Compute the annual break-even sales in units and dollars. (Round your intermediate and final answers to the whole number.) 3. Draaksh has budgeted sales of $8.2 million for the next fiscal year. What is the company's margin of safety in dollars and as a percentage of budgeted sales? (Round your intermediate and final answers to the whole number.)

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