1) Please prepare a contribution margin income statement at normal capacity and label the income statement as Figure 1. Please show the following format and show columns for totals and per unit. Assume that sales are priced at the normal price. Total at 2,000 Units Per unit Sales $800,000 $400 Vanable Cost $321.000 $160.50 Contribution Margin $479,000 $239.50 Fixed Cost S182XXD S182 000 Operating Income $297,000 S148.50 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2.000 units? Please explain your calculations and reference to the chart in Figure 1 No, fixed cost does not change because of 3) If demand for 2020 is unstead 2.500 units should the company pay to increase their capacity? Why? Please explain your calculations and reference to the chart in Figure 1. Assume units are sold at the normal price. Please mention the concept of incremental profits. Hint: If you expand capacity, you will have to pay additional fixed costs of $25.000. Remember that fixed costs are fixed within the relevant range. If you expand capacity then you are outside this range. If you expand capacity then you can make revenue on 500 additional units at the normal price and would pay variable costs on 500 additional units. Please consider the incremental profit or loss of expanding capacity. The incremental profit is the increase in revenues minus the increase in costs of adding 500 more units. If the incremental profit of expanding capacity is positive then you should de 4) Assame sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand expands to 1.002 units. Discuss which amounts on the income statement will change if the company makes and sells two more imits. Please discuss your calculations and reference to Figure 1