2 Volume Profit Amalysis (S Pnr) Please advise me using your knowledge of cost behavior and cost-volume-profit analysis using the assumptions assumptions are as follows: Basic surfboard selling price: $600 in your text. l am thinking of manufacturing surfboards in a small shop in downtown HB. My revenue and costs Direct materials (per board): Foam $200 Fiber glass& resins $100 Fins $80 Direct labor (per board): 2 hours@$75/hour Overhead: Indirect materials $25 (per board) Indirect labor $20 (per board) Variable overhead (electricity, shop cleaning, etc.) $20 (per board) Rent (annual) $18,000 Insurance (annual) $2,000 Advertising (monthly) $500 Office costs (monthly) $1000 1. Allocate the costs into variable costs per surfboard (unit) and total annual fixed costs. 2. What is the break-even quantity? How much total revenue is generated from those sales? The business needs to have a net income of $50,000 in order for me to change careers. How many boards need to be sold? 3. 4. What is the break-even quantity if I pay a 10% commission of the sales price assuming a net income of S 50,000? 5. Prepare a cost-volume chart showing a loss, break-even and profit using the numbers in number 2 above