A. Based on the CVP analysis:

1. explain the results for the breaking point, margin of safety ratio and cvp income statement

2. provide two reasons (benefits or drawbacks) for making the changes recommended by hakim

B. Explain and compare the per unit and the total cost behavior for fixed cost.

1. Provide and explain 2 examples for per unit cost behavior for fixed cost

2. provide and explain 2 examples for the total cost behavior for fixed costs.

Ch18 Case Study Assignment - Part 2 Cost-Volume-Profit Analysis Problem Hakim is the manager for Tahoe Bed and Breakfast. Hakim is currently considering an upgrade to the breakfast service to attract more business that will add $3 in variable costs to Tahoe's current variable costs of $15. Hakim is also proposing that a 10% room rate increase (from $60 to $66 per room) will produce an increase in room rentals from 3,500 to 4,000 units. Fixed costs will remain at $126,000 for Tahoe. 1. Prepare the Break-even point and Margin of Safety Ratio for Tahoe. 2. Prepare the CVP Income Statement (Totals) for Tahoe. Ch18 Case Study Assignment - Part 2 (Total 10pts) How Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): Sheet 1 Accessibility: Good to go