contribution per unit, contribution per margin and break even point in units and revenues

Time PROBLEM 2 TOYS - 4- KIDS manufactures and sells football shoes for kids. Budgeted data for a specific pair of shoes is as follow: Forecasted annual sales volume Selling price per unit Variable expenses Ratio: 80,000 units $50.00 70% Annual fixed expenses: $900.000 Determine: 1. The Contribution Per Unit and the Contribution Margin Ratio (3 points) 2. The break-even point in units AND revenues (4 points] 3. The level of sales needed (in units) in order to earn a target profit of $ 450,000 [4 points) 4. Determine and explain the Margin of Safety Ratio [4 points) 5. What will be the impact on the profits if the sales price decreases by 10%, the advertising expenses increase by $15,000, and the sales volume increases by 20%? [6 points] 6. Explain briefly (in less than 150 words) the importance of B.E. Analysis for you, as the owner of a small car wash (4 points)