Case: Cost Structures for Global Shippers Inc. Maragement from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option has the opposite-relatively lower variable costs in its cost structure but higher foxed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in making the decision: Cost Information Option B Option A $100 $100 Delivery price (revenue) per Shipment $85 $60 Variable cost per shipment delivered Contribution Margin per unit $15 $40 Fed costs (annual) $1,200,000 $4,500,000 Management wants you to write a professional report, answering the following questions Questions 1) What is the break-even point in terms of volume e, number of shipments per year for Option Option ? ) How many shipments would have to be made under Option to produce operating income of $30,000 for an annual perico? (3) How many shipments per year would have to be made under Option to produce an operating margin equal to 9 of sales revenue 14) How many shipments are required under Option to produce net income of $180,000 per year, given a corporate tax rate of 40% (5) Assume that for the coming year total fixed costs are expected to increase by 15 for each of the two options What is the new break even point, in terms of number of shaments.fortach option what percentage did the break even point change for each case? How do these figures compare to the percentage increase in budgeted fied costs 16) Assume an average income tax rate of 20% Wat volume number of shipments would be needed to generate net of of revenue for each option? Which option do you think is the more profitable one for this business? Explain (B) Which option do you consider to be more risky to the business? Explain calculate degree of operating everage the answer this