Based on the information presented in Tables 1 and 2, calculate the following: Calculate Total Variable Costs. Calculate Total Fixed Costs Calculate Contribution Margin per Unit Calculate Break-Even, Unit Sales Calculate Target Profit

Table 1 Fashion Designs International, Inc. Comparative Income Statements year ended December 31, 2014 2015 2016 Sales $1,987,050 $2,124,885 $2,249,830 Cost of Goods Sold: Fabric 237,250 250,390 264,260 Cutting 201,500 212,660 224,440 Sewing 260,000 274,400 289,600 Brand labels 3,900 4,116 4,344 Thread etc. 650 686 724 Shipping and freight 29,250 30,870 32,580 Total Cost of Goods Sold 732,550 773,122 815,948 Gross Profit 1,254,500 1,351,763 1,433,882 Operating Expenses: Bank charges 1,260 1,260 1,320 Salary expense 350,000 360,000 370,500 Wage expense 263,250 291,722 323,275 Employee benefits - salaried employees 63,000 64,800 66,690 Employee benefits - hourly employees 31,590 35,007 38,793 Insurance 22,450 22,450 23,124 Information Technology services 8,220 8,340 8,520 Legal fees 15,000 18,840 20,280 Licenses and permits 5,400 5,400 5,400 Meals and entertainment 14,304 15,019 15,925 Printing and reproduction 1,452 1,740 1,860 Professional Fees 15,504 16,260 16,920 Marketing and promotion 30,996 34,104 30,996 Rent - Office 36,996 36,996 37,380 Rent - Warehouse 41,004 42,234 42,234 Repairs and maintenance 8,592 7,380 10,188 Security expense 2,100 2,100 2,184 Office supplies 2,136 2,532 2,844 Telephone and internet 2,472 2,604 2,808 Vehicle expenses 5,760 5,875 6,051 Travel expenses 21,000 21,210 21,846 Utilities 1,956 2,034 2,156 Total operating expenses 944,442 997,907 1,051,295 Profit before taxes 310,058 353,856 382,587 Income taxes 93,017 106,157 114,776 Profit after taxes $217,041 $247,699 $267,811 Table 2 Fashion Designs International, Inc. Assumptions for Income and Expense Projections Expense Item F/V (1a) Formula 2016 amount (1b) Projected annual growth Effect of overseas move Cost of Goods Sold: Fabric (2) V units sold (6) x VC per unit $7.30000 3.00% -50% Cutting (2) V units sold (6) x VC per unit $6.20000 3.00% -50% Sewing (3) V units sold (6) x VC per unit $8.00000 3.00% -50% Brand labels (4) V units sold (6) x VC per unit $0.12000 3.00% -50% Thread etc. (1) V units sold (6) x VC per unit $0.02000 3.00% -50% Shipping and freight (5) V units sold (6) x VC per unit $0.90000 3.00% 300% Operating Expenses: Bank charges F fixed monthly cost x 12 $1,320 1.5% 0% Sal exp - owner F fixed annual cost x 1 $150,000 0.0% 0% Sal exp - employees F fixed annual cost x 1 $220,500 2.0% 0% Wage expense V units produced x VC per unit $8.93025 2.0% -20% Emp benis - sal F salary expense x percentage $66,690 same % 0% Emp benis - hrly V wage expense x percentage $1.07163 same % 0% Insurance F fixed annual cost x 1 $23,124 1.5% 250% IT services F fixed monthly cost x 12 $8,520 1.5% 0% Legal fees F fixed monthly cost x 12 $20,280 1.5% 200% Lic & Permits F fixed monthly cost x 12 $5,400 1.5% 75% Meals and entertainment F fixed monthly cost x 12 $15,925 1.5% 0% Printing and reproduction F fixed monthly cost x 12 $1,860 1.5% 0% Professional Fees F fixed monthly cost x 12 $16,920 1.5% 0% Marketing and promotion F fixed monthly cost x 12 $30,996 1.5% 0% Rent - Office F fixed monthly cost x 12 $37,380 1.5% 0% Rent - Warehouse F fixed monthly cost x 12 $42,234 1.5% 0% Repairs and maintenance F fixed monthly cost x 12 $10,188 1.5% 20% Security expense F fixed monthly cost x 12 $2,184 1.5% 0% Office supplies F fixed monthly cost x 12 $2,844 1.5% 0% Telephone and internet F fixed monthly cost x 12 $2,808 1.5% 0% Vehicle expenses F fixed monthly cost x 12 $6,051 1.5% 0% Travel expenses F fixed quarterly cost x 4 $21,846 1.5% 400% Utilities F fixed monthly cost x 12 $2,156 1.5% 0% 1a F = fixed cost; V = variable cost; 1b for variable (V): amount per unit; for fixed (F): annual amount 2 cost paid on per yard basis ; 3 cost paid on per piece basis 4 cost paid on per label basis ; 5 cost paid on weight and volume basis 6 units sold and units produced both projected to grow at annual rate of 6%