Cascade Company estimated the following variable and fixed cost for the only product it produces Variable Cost Per Unit Fixed Cost 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