a) Which cost structure should they use? Why? Note: Your answer should be in complete sentences and 30 to 50 words. changes: Do 4) Increase to cosis: Formala NOT Sales Variable Costs: Direct Material Direct Labor Variable Overhead Variable S&A Total Variable Costs Fixed Overhead Fixed S&A Total Fixed Costs Dorilane Company NEW Cost Structure Change New Per unit/set or Cost Notes Increase by $40 443 Per unit Decrease by 8% 104.59 Per unit Increase by 12% 26.824 Per unit Increase by $300,000 Increase by 150,000 Decrease $ 0.30 per unit Increase by $ 0.25 per unit 4.44 46.04 181.894 577 000 247000 Per unit Per unit Per unit Total Ss Total Ss 824 000 Total Ss Total Variable Costs Variable Costs: Direct Material Direct Labor Variable Overhead Variable S&A Dorilane Company-Summary of Cost Structure Total Dollars 432000 91,000 18000 174.000 Per unit/set (show 2 decimals) Notes 113.68 per unit 23.95 per unit 4.74 Per unit 45.79 715 000 per unit Fixed Overhead Fixed S&A 188.16 per unit 277000 97000 Total Fixed Costs Total Costs Totals totals 374000 1089000 IGINAL: NOL b) Using the NEW cost structure, calculate the following assuming Docilane Company produces and sells 8,000 units. (Make sure to show your work for partial credit). Total Sales Revenue Net Operating Income Contribution Margin (total Ss) Contribution Margin per unit Contribution Margin ratio Variable Costs per unit Break-even in units Break-even in dollars Margin of safety in units Margin of safety percent Margin of safety in dollars Degree of Operating Leverage