Chromatics, Inc., produces novelty nail polishes. Each bottle sells for $3.60. Variable unit costs are as follows:Acrylic base ……………….$0.75Pigments ……………………0.38Other ingredients …………..0.35Bottle, packing material ……1.15Selling commission ………..0.25Fixed overhead costs are $12,000 per year. Fixed selling and administrative costs are $6,720 per year. Chromatics sold 35,000 bottles last year.Required:1. What is the contribution margin per unit for a bottle of nail polish? What is the contribution margin ratio?2. How many bottles must be sold to break even? What is the break-even sales revenue?3. What was Chromatics’ operating income last year?4. What was the margin of safety?5. Suppose that Chromatics raises the price to $4.00 per bottle, but anticipated sales will drop to 30,400 bottles. What will the new break-even point in units be? Should Chromatics raise the price? Explain.