4 (10 points). Christabella, daughter of John Milton, produces and sells self-help kits to siblings to put away differences between them so siblings can work towards common goals. Last year, Christabella sold 198,400 kits (units). The income statement for Christabella, for last year is as follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income $992,000 545,600 $446,400 180,000 $266,400 a. Compute the break-even point in units and in revenues. Compute the margin of safety in sales revenue for last year. b. Suppose that the selling price decreases by 8 percent. Will the break-even point increase or decrease? Recompute the break-even point in units. (Round up to the nearest whole unit.) c. Suppose that the variable cost per unit decreases by $0.20. Will the break-even point increase or decrease? Recompute the break- even point in units. (Round up to the nearest whole unit.) d. Can you predict whether the break-even point increases or decreases if both the selling price and the unit variable cost decrease? Recompute the break-even point in units incorporating both of the changes in Requirements 2 and 3. (Round up to the nearest whole unit.) e. Assume that total fixed costs increase by $50,000. (Assume no other changes from the original data.) Will the break-even point increase or decrease? Recompute it. (Round up to the nearest whole unit