Cascade Company estimated the following variable and fixed cost for the only product it produces: Direct Materials $132.30 $0 Direct Labor $115.30 $0 Factory Overhead $24.50 $264,000 Sales Salaries and $12.70 $245,000 Commissions Advertising $0 $75,000 Travel $0 $39,500 Misc. Selling Expenses $6.70 $24,500 Office and Officer Salaries $0 $220,000 Supplies $6.30 $15,000 Misc. Administrative $2.20 $17,000 Expenses Required: 1. Prepare an estimated Contribution Margin Income Statement for the year ended December 31, 2018. (6,000 units are to be produced and sold). Assume the estimated sales price will be $500 per unit. Include one category for variable cost and one category for fixed cost. 2. Compute the break-even point in units and sales dollars 3. Compute the break-even point in units and sales dollars assuming the changed facts below: The sales staff will now handle all of the advertising cost and their sales commission will be increased to 10% of every sales dollar. Remember, the sales price per unit is $500. The sales staff will also have their fixed salaries decrease by $100,000. All other facts will remain unchanged. 4. Which alternative would you select assuming that Cascade will sell at least 5,000 units? Why? 5. Referring to the original facts; what is the sales in units and sales dollars required to generate a 12% Operating Income as a percentage of Sales?