3-16 CVP computations. Fill in the blanks for each of the following independent cases. Case Variable Costs $500 Revenues Contribution Margin Percentage Fixed Costs Total Costs S 800 Operating Income $1,200 $ 200 $300 $2,000 $1,000 $1,500 $700 $1,000 $300 40% Required 3-17 CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2011. Variable cost per unit is $60 and total fixed costs are $1,640,000 1. Calculate (a) contribution margin and (b) operating income. 2. Garrett's current manufacturing process is labor intensive. Kate Schoenen, Garrett's production man- ager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. Garrett expects to maintain the same sales volume and selling price next year. How would acceptance of Schoenen's proposal affect your answers to (a) and (b)in requirement 1? 3. Should Garrett accept Schoenen's proposal? Explain. 3-18 CVP analysis, changing revenues and costs. Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunny Spot's fixed costs are $23,500 per month. Canadian Air charges passengers $1,500 per round-trip ticket Calculate the number of tickets Sunny Spot must sell each month to (a) break even and (b) make a target operating income of $17,000 per month in each of the following independent cases. 1. Sunny Spot's variable costs are $43 per ticket. Canadian Air pays Sunny Spot 6% commission on ticket price. 2. Sunny Spot's variable costs are S40 perticket. Canadian Air pays Sunny Spot 6% commission on ticket price. 3. Sunny Spot's variable costs are $40 per ticket Canadian Air pays $60 fixed commission per ticket to Sunny Spot. Comment on the results. 4. Sunny Spot's variable costs are $40 per ticket It receives S60 commission per ticket from Canadian Air It charges its customers a delivery fee of $5 per ticket. Comment on the results. Required