2. CVP analysis; break-even (4.5pts): Zintendo, Inc., produces and sells a single product, the Zintendo Stitch gaming console. The firm's Contribution Margin Income Statement for the month follows. Assume the firm's sales volume for the month ended 9/30/2022 was 1,300,000 units. Part A (1.5pts total; 0.5 pts each calculation): 1) Calculate the firm's Contribution Margin (CM) per unit. (0.5pts) 2) Calculate the number of gaming consoles the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the 2. CVP analysis; break-even (4.5pts): Zintendo, Inc,, produces and sells a single product, the Zintendo Stitch gaming console. The firm's Contribution Margin Income Statement for the month follows. Assume the firm's sales volume for the month ended 9/30/2022 was 1,300,000 units. Part A (1.5pts total; 0.5 pts each calculation): 1) Calculate the firm's Contribution Margin (CM) per unit. (0.5pts) 2) Calculate the number of gaming consoles the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the nearest whole unit. (0.5pts) 3) Assume the company's target income for the upcoming month is $250,000,000. Determine the unit sales needed per month to attain this target income. Round your answer up to the nearest whole unit. (0.5pts) Part B (3pts total; 1pt each income statement): Prepare contribution margin income statements for each of the three separate cases below. The current sales volume for the month ended 9/30/2022 is 1,300,000 gaming consoles. 1) "What if" H1? Suppose the number of units produced and sold increases to 1,350,000 units per month and total fixed costs increase by $8,500,000 (assume all other variables stay the same) per month. 2) "What if" #2? Return to the original data. Suppose instead the unit selling price per unit decreases by 10% and the number of units produced and sold (i.e. sales volume) increases by 15% (assume all other variables stay the same). 3) "What if" #3? Return to the original data. Suppose instead that units produced and sold decreases to 1,250,000 gaming consoles per month, total fixed costs decrease by $15,000,000 per month, price per unit increases by $10 per unit, and variable costs per unit increase by $8 per unit. 2. CVP analyah; break-even (4.5 pts ). Rintendo, incy produces and self a vingle product, the units. Part A (1.5pts total; 0.5pts each calculation): 1) Calculate the firm's Contribution Margin (CM) per unt, 10 .5.pte) 2) Calculate the number of gariry convoles the firm will neted to 4 t per month in erifer to nearest whole anit, (0.5pte) 3) Assume the company's target income for the ogcoming munth ia 5230,000000 . Deterinine the unit ales needed per mosth to attain this caiset income llownd veur answer up to the nearest whele unin, (o.5ente) Part B (3pts total, Lpt each income statement): Prepare contribution mianen incomed satements for each of the these separate cases betow. The curcent sales whime for the manits ended 9/30/2022 is 1,300,000 gaming conseles. 1) "What it" (1)? Suppose the number of units profuced and wols increases to 1,350,000 units per month and total fixed cost increace by 58,500,000 faswume all other variahlet stay the samel per monteh. 2) 'What if a 2? Return to the original datas suppose insteas the unit Miling price per unit decrebses ty 10N and the number of units produced and sold (i.e. wist wolumet increases by 15% (assame all orher variatles stay the umal. 3) "What if i83? Retum to the oripinal dsta. Suppose instead that uniti preduced and sold decteases to 1,250,000 gaming consodes per manth, total fwed costs deciesse in 515,000,000 per moeth, pitice per unit incieases hy $10 pet ueit, and variathe cects per
