=+4-39 KK CVP, sensitivity analysis OBJECTIVES 1, 2, 5 Technology of the Past (TOP) produces old-fashioned simple corkscrews. Last year was not a good year for sales, but TOP expects the market to pick up this year. Last year’s income statement was:

Sales revenue ($4 per corkscrew) $40 000 Variable cost ($3 per corkscrew) 30 000 Contribution margin 10 000 Fixed cost 6 000 Operating profit $4 000 To take advantage of the anticipated growth in the market, TOP is considering the following courses of action: