Collegiate Canvas Co. currently makes and sells two models of a backpack. Data applicable to the current operation are summarized in the following columns labeled Current Operation. Management is considering adding a Value model to its current Luxury and Economy models. Expected data if the new model is added are shown in the following columns labeled Proposed Expansion: Selling price per unit Variable expenses per unit Annual sales volume-units Fixed expenses for year Current Operation Luxury Economy $28 $ 15 11.2 7.0 11,000 20,000 Total of $68,000 Proposed Expansion Luxury Economy Value $ 28 $ 15 $ 18 11.2 7.0 8.0 6,500 18,500 9,000 Total of $87,000 Required: a. Calculate the company's current total contribution margin and the current average contribution margin ratio. b. Calculate the company's current amount of operating income. c. Calculate the company's current breakeven point in dollar sales. d. State why the company might incur a loss, even if the sales amount calculated in part c was achieved and selling prices and costs didn't change. e. Calculate the company's total operating income under the proposed expansion. f. Based on the proposed expansion data, would you recommend adding the Value model? g. Would your answer to part f change if the Value model sales volume were to increase to 9,400 units annually and all other data remained the same? Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Required E Required F. Required G Calculate the company's current total contribution margin and the current average contribution margin ratio. Total contribution margin Average contribution margin ratio % Required B > Required A Required B Required c Required D Required E Required F Required G Required B Calculate the company's Santoral contribution margin and the current average contribution margin ratio. Total contribution margin Average contribution margin ratio Required B> Calculate the company's current amount of operating income. Operating income Operating loss Calculate the company's current breakeven point in dollar sales. (Do not round intermediate calculations.) Break even point Because sales mix might change. Because of increase in tax sale. Because fixed cost might exceed total contribution. Calculate the company's total operating income under the proposed expansion. Operating income Operating loss f. Based on the proposed expansion data, would you recommend adding the Value model? g. Would your answer to part f change if the Value model sales volume were to increase to 9,400 units annuall remained the same? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Yes e oue. Would mig me your answer to part f change if the Value model sales volume were to increase to 9,400 units annually and all other data remained the same? Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Required E Required F Required G