72 Requirement 3: 73 Redo Trident's 2015 income statement in contribution format, showing both a total column and a per unit column in the space provided below. 74 You MUST use formulas and cell refereces in the income statements in Requirements 3 and 5 to earn full credit. 75 Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. 76 77 78 Total Units Amount 25,000 Per Unit 79 80 Sales $ 350,000 $ 14.00 81 Variable Costs 82 Direct materials 60,000 2.40 Hint: Divide total cost column by total units to get VC per unit. 83 Direct Labor 52,500 2.10 84 Variable MOH 25,000 1.00 Hint: Total MOH = Variable OH + Fixed OH. Variable OH = $1 per unit 85 Sales commissions 21,000 0.84 86 Shipping 7,000 0.28 87 Variable billing 3,000 0.12 Variable billing per unit was calculated in Requirement 2 88 Total Variable Costs 168,500 6.74 89 Contribution Margin 3,000 0.12 90 Fixed Costs 91 Fixed MOH 39,000 92 Advertising 90,000 93 Sales and admn. salaries 60,000 94 Fixed billing 513 Fixed billing was calculated in Requirement 2 95 Total Fixed Costs 189,513 96 Net Operating Income $ (8,013) Hint: This is the same as the original Operating Income above. 97 98 99 Requirment 4: 100 Calculate Trident's current breakeven point in both units and dollars. 101 Show work in this area: 102 ANSWER 103 104 105 Units 106 107 108 109 110 Dollars 111 112 Requirement 5: 113 114 a. The vice president suggests a few changes to fix this problem: 115 Reduce selling price by 5.00% 116 Reduce advertising by $ 20,000.00 C. Multiply the LOWEST non-zero ID number above by 10,000 117 This should increase the number of units sold by 10,000 units 118 119 The new selling price price per unit would be: 120 121 The new advertising amount would be: 1221 Prepare new Curli Statement, using 134 total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement 3 by the new 135 number of units. (Remember, VC per unit remains constant.) 136 137 Total Units Amount 138 Per Unit 139 140 Sales New from above 141 Variable Costs 142 Direct materials 143 Direct Labor 144 Variable MOH 145 Sales commissions 146 Shipping 147 Variable billing 148 Total Variable costs 149 Contribution Margin 150 Fixed Costs 151 Fixed MOH 152 Advertising New from above 153 Sales and admn. salaries 154 Fixed billing 155 Total Fixed Costs 156 Net Operating Income 157 158 159 Requirement 6: 160 Using the budgeted income statement based on the vice president's proposal above, calculate the 161 Show your work in the areas provided. (Hint: You must calcualte a new breakeven point to complete this section.) 162 a. New breakeven point in units . 163 164 Answer 165 166 167 b. Margin of safety in units: 168 169 Answer 170 171 172 c. Margin of safety in dollars of sales: 173 174 Answer 175 176 177 d. Margin of safety percentage: 178 179 180 181 182 Requirement 7: 183 a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. 184 Answer should use two decimal places. 185 Show your work in this area: 186 187 Answer 188 189 190 b. How much will operating income increase if sales volume increases by 10.00% 191 192 Percent 193