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Chapter 5 Pavillion Corp's activity for the first for months of 2022 is as follows: 15 MARKS Units Total Cost January 2,100 $36,000 February

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Chapter 5 Pavillion Corp's activity for the first for months of 2022 is as follows: 15 MARKS Units Total Cost January 2,100 $36,000 February 2,600 $43,500 March 2,900 $48,000 April 2,700 $45,750 Required: a) Using the High-Low method, compute: i. the variable cost component of the Total Costs. ii. the fixed cost per month for Pavillion Corp. 2 Marks 2 Marks b) Based on your answer from part (a) above, if the company's selling price per unit is $25.00, compute: i. the contribution margin per unit. 1 Mark II. the contribution margin ratio. 1 Mark iii. breakeven point in units and dollars ($). 3 Marks iv. sales ($) required to earn a Target Income of $12,500. 2 Marks V. margin of safety ($) and margin of safety ratio, if the company expects to sell 3,000 units in May. 4 Marks

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