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Po once Problem 4-35 Multiple-Product Break-Even ris Inc. manufactures two types of metal stampings for the automobile industry: door handles OBJECTIVE04 Pola and trim kits. Fixed costs equal S146,000. Each door handle sells for S12 and has variable costs of s9; each trim kit sells for $8 and has variable costs of ss ded Required 1. What are the contribution margins per unit and the contribution margin ratios for door ing handles and for trim kits? If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? How many door handles and how many trim kits must be sold for Polaris to break even, as- suming the same sales mix from Requirement 2? 2. 3. Check figures: 4. Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If 2. Operating income this is done, fixed costs will decrease by $35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain. = $34.000 3. Trim kits = 32.444