Below is the budgeted P&L Statement for Pittsburgh Tools, Inc - Cordless Division. 18v Drill/Driver $537,500 $125.00 223,600 $313,900 Sales volume (units) Revenue Variable costs Contribution margin Pittsburgh Tools - Cordless Division Budgeted Quarterly Product Line Contribution Margin Analysis 18v Circular Saw 18v Light Total 4,300 $465,000 3,100 $150.00 $260,000 5,200 $50.00 $1,262,500 12,600 52.00 210,800 $73.00 $254,200 68.00 $82.00 Drect fixed costs 137,958 142,083 Product line margin $175,942 $112,117 145,600 $114,400 122,980 ($8,580) 28.00 580,000 $22.00 $ 682,500 $ 403,021 279,479 Common fixed SG&A expenses 200,000 Divisional operating income 79.479 Current sales mix (revenue) Target sales mix (revenue) 42.6% 42.6% 36.8% 20.0% 100.0% 36.8% 20.6% Each of the question below is to be treated independently. Basic CVP Analysis - Using Goal Seek 1. Determine the breakeven point for the Drill/Driver product line. 2. Pittsburgh Tools is considering modifications to the 18v Light production line. Analysis suggests that the modifications could result in $0.65 per unit variable cost reduction and $1,300 per quarter fixed cost increase. Assuming these changes have no impact on volume, determine the price that would be necessary to achieve $0 product line margin? Multiproduct CVP Analysis - Using Solver 3. Assuming the current sales mix reaches the targeted sales mix, determine the breakeven point in sales revenue necessary for the division to achieve $0 divisional operating income (breakeven). 4. Assume the current sales mix reaches the targeted sales mix, determine the sales revenue necessary for the division to achieve $100,000 divisional operating income.