2 (8 Marks) The Layal Corporation has compiled the following financial data for a new retail facility: annual fixed costs are estimated at $100,000; selling price per unit of product estimated at $15, variable cost per unit estimated at $5. The company is also interested to achieve a profit of 120,000 in the first year of operations and 200,000 in the second year of operations. Formulas to be used Break-even point units Fixed costs/selling price per unit-variable cost per unit Break-even point $-Break-even point Units x selling price per unit Break-even point units (profit) - Fixed costs + Profit/selling price per unit-variable cost per unit Break-even point Profit $-Break-even point units - Fixed costs/selling price-variable cost Case 1 (1.5 Marks). Calculate the breakeven point in units and $ and the contribution margin. Answer Case 2 (1.5 Marks). Calculate the breakeven point in units and $ and contribution margin taking into account the profit that the corporation is planning to have. Answer Case 3 (2 Marks). Calculate a) the breakeven point in units and $ b) contribution margin c) the net income if the corporation anticipates its fixed costs to increase by 180,000 and the selling price to increase by 40%. Answer: Case 4 (1.5 Marks). Calculate the contribution margin amount and the variable cost if net income is 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. I BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Case 5 (1.5 Marks). Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to 40% of sales. What is the pretax income if sales are $650,000