Chromatics, Inc., produces novelty nail polishes. Each bottle sells for $$8\mathrm{.}50.$ Variable unit costs are as follows: Acrylic base $$1\mathrm{.}25,$ Pigments $0\mathrm{.}45,$ Other ingredients $0\mathrm{.}65,$ Bottle, packing material $1\mathrm{.}25,$ Selling commission $0\mathrm{.}85.$ Fixed overhead costs are $$500,000$ per year. Fixed selling and administrative costs are $$76,275$ per year. Chromatics sold $300,000$ bottles last year. Required: $1.$ What is the contribution margin per unit for a bottle of nail polish? What is the contribution margin ratio? $2.$ How many bottles must be sold to break even? What is the break$-$even sales revenue? $3.$ What was Chromatics's operating income last year? $4.$ What was the margin of safety? $5.$ Suppose that Chromatics, Inc., raises the price to per bottle, but anticipated sales will drop to $30,400$ bottles. What will the new break$-$even point in units be$?$ Should Chromatics raise the price? Explain.