1. Identify all the expenses above as being either Fixed or Variable. For expenses labeled Shipping, Amortization and Electricity, explain why you chose either fixed or variable. 
2. Using your cost behaviour breakdown, calculate the Contribution Margin for each unit produced. 
3. What would be the number of units necessary to produce for a breakeven scenario? 
4. Management has recently discovered that they are now able to lower their labour costs from 67,000 to 55,000 within the year with all other costs remaining the same. What is the Contribution Margin now? 
5. Calculate the Gross Profit Margin and Net Profit Margin Ratios. 

The year has passed and Ron has become used to being able to come to you with more and more complex finance and accounting questions about this Ukrainian Division. He has come into your office in the middle of November of the following year. Your projects are going quite well as he has a new task for you. He's been reviewing the operations of the Ukrainian plant and has some questions about the Income Statement. The plant appears to be much more profitable than the other bottling plants within the company and he's wondering about implementing some of the practices that he has seen there into Canadian Bottling sites. He has provided you with the Income Statement that the Canadian finance team has provided him and wants some key pieces of information from you. Ukrainian Bottling Company Inc. Income Statement For the Year Ended October 31st, XXXX Revenue Cost of Goods Sold Labour Material Total Cost of Goods Sold Gross Profit Expenses Packaging Labour Electricity Amortization Rent Shipping Total Expenses Net Income $650,000.00 Current number of unit produced: Number of Employees on Staff: Original cost of Smelting Machinery: Number of Shares Outstanding: Trading Price per Share: $75,000.00 $50,000.00 $125,000.00 $525,000.00 $67,000.00 $14,000.00 $32,000.00 $15,000.00 $160,000.00 $288,000.00 $237,000.00 An executive summary of their financial position has been provided by the Ukrainian Management team; all of this information appears to be useful to them but, only some is relevant to you. Highlights of the financial figures are as follows: 12,000 521 $85,000 125,000 $12