Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit 4,000 Upper Limit 6,000 Production (# of boxes) Production Costs: Direct Materials $60,000 $90,000 120,000 Direct Labour 80,000 Overhead: Indirect Materials 25,000 40,000 20,000 37,500 50,000 20,000 Indirect Labour Depreciation .... Selling & Administrative Expenses: Sales Salaries Office Salaries Advertising 50,000 30,000 65,000 30,000 45,000 20,000 45,000 15,000 Other Total $365,000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable components. c) Assuming sales of 5,000 units, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and clearly showing contribution and net income. d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixedcosts are reduced by $50,625. How will this impact the margin of safety ratio? f) The President of Buggs-Off is under pressure from shareholders to increase operating income by 20%in 2021. Management expects per unit data and total fixed costs to remain the same in 2021. Using the equation method, compute the number of units that would have to be sold in 2021 to reach the shareholders desired profit level. Is this a realistic goal