ACCT 210 Cost-Volume-Profit & incremental Analysis Case Study Pisn ar Name 4. Assurming the seling price and cost changes in the Marketing Plan are adopted, prepare a CVP Income Marketing Plan Marketing Class Section Time Statement for 2019 , assuming sales and production increase by 20% as outlined in the Round to the eNarne Please staple your pages together! Child's Play Company CVP Income Statement For the Year Ended December 31, 2019 This case study may be completed indlvidually or with a partner from your ACCT 210 class section The esalgnment must be handwritten and o hard copy muet be turnest in to the front desk of the School of Accountancy (McCielland HaW Room 301) no later than 12pm noon on Friday, October 12h 2018 The Total Per Unit assignment is worth 8 points. There wi be a 20%-point deduction for every business day or partial business dtay that me assignmont is late Child's Play Company Child's Play Company makes a plastic rattle for taddlers. The ratle is r rattle is generally marketed through exclusive of the company, was retailers located in upscale shopping malls. In late 2018, Diana Suarez, the president considering an alternative marketing plan for 2019 that was presented to her by Bill Duffy, the marketing considering an ateraahopping malls. manager. Based on sales from January through September 2018, Diana expected that 2019 salos would amount to 300.000 units. Bill's altemative marketing plan is presented below. come 2019 Marketing Plan: "At the present time, we sell the product to retailers for $8.00 per rattle generally charge the consumers between $9 and $9.50 I we cut our selling price to retailers to $7.50, I to eeking expect that the product will do much better. Their increased markup will give them the incentive to display our shoukd support this strategy by $4.600 in Advertising 5. Using the above CVP Income Statement, determine the Company's Contribution Margin Ratio for 2019 he gaiaproduct more prominently and to promote it more vigorously to customers. We al order Round to the zero decimal places. supplying more promotional materials to retailers, which I expect would be an increase of inistrat ption costs. Based on the price cut and the increase in advertising and promotion, I expect that we ract, the nd Promotion will be able to boost our sales volume by 20 percent to 360,000 units in 2019 Diana received cost data from the company's CFO, Don Capp. Don expects that the cost data below are also reliable estimates for 2019 for a production volume up to 400,000 units. Beyond 400.000 units, thec would have to rent additional machines (with a capacity of 100,000 units ompany Plan 0,000 net i s. Assuming the selling price and cost changes in the Marketing Plan are adopted, determine the break-even point in number of rattles for the company in 2019. For full credit, please show the elements of your computations. Round to the nearest next whole unit each), which would increaso fixed manufacturing overhead costs by $50,000 per machine. 18 Manufacturing Costs for rattlies (based on production volume of 300,000 units): Direct Materials v Direct LaborC $0.80 per unit $10 per hour (each worker can make 20 units in 1 hour) $0.75 per unit Variable Manufacturing Overhead $1.20 per unit Fixed Manufacturing Overhead $540,000 Selling and Administrative Costs for rattles (based on sales volume of 300,000 units) Sales Commissions Shipping Costs Advertising and Promotion (fixed) $0.80 per unit $0.50 per unit $180,000 $270,000 Fixed Selling and Admin Expenses