1.What is Mirabel's over-all break-even point in sales dollars?

2.Assume that sales revenue remains constant, what is the impact on break-even and the margin of safety if Paul takes Mary Jane's advice and increases sales commission to 15%?

3.If Mirabel purchases the new equipment for $1,200,000, it will increase fixed costs by 10% but will decrease the variable cost per unit for all 3 models by 5%. What will Mirabel's new break-even point be?

4.If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are expected to increase by 8%. What is the break-even and margin of safety under these circumstances?

5.If the projection is that sales will increase by 10% in the coming year, can the company afford to also increase commission from 12% to 15%? Why or why not.

6.Assume that sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201. What is the new break-even?

Mirabel Manufacturing Budgeted Income Statement For the Year Ending December 31 Sales S Cost of goods sold: Variable 5 13,300,000 Fixed s 9,300,000 Gross Margin 5 Selling 8: Administrative Commissions $ Fixed Marketing Expenses S Fixed Administrative 5 Net Operating Income 5 Model 101 Model201 Normal Annual Sales Volume 16,000 19,000 Unit Selling Price 5 650 S 750 Variable expense per unit 5 250 S 200 36,750,000 14,150,000 4,410,000 1,350,000 6,000,000 2,390,000 Model 301 11,000 1,100 500 mm