1. What is the variable cost per unit (rounded to the nearest penny)?
2. What are the total fixed costs?
3. Prepare a contribution margin income statement for the company. What is the company"s current net income? The marketing manager predicts the company can increase sales by 20% if it reduces the selling price by 5% and upgrades the packaging; the improved packaging would increase that cost by 50 percent. If the company makes the change, what is its projected net income?
4. What is the break-even point in units (rounded to the nearest whole unit)?