Cost-Volume-Profit Analysis Problem Hiro is a digital marketing manager for the Castle Video Games. Hiro is currently working on a social media promotional campaign that will add $18,000 in fixed costs to Castle's current fixed costs of $54,000. Hiro is also proposing that a 10% sales price decrease (from $40 to $36 per video game) will produce an increase in sales volume from 6,000 to 15,000 units. Variable costs will remain at $28 per video game. 1. Prepare the Break-even point and Margin of Safety Ratio for Castle. Break-even point in units Margin of Safety Ratio Current 2. Prepare the CVP Income Statement (Totals) for Castle. CVP Income Statement: Sales revenes Less: Variable costs Contribution margin Current After Changes Increase/Decrease After Changes Increase/Decrease to Profit/Loss Less: Fixed costs Profit/Loss Ch18 Case Study Assignment - Part 3 (Total 10pts) How Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total 7pts): *Students will be graded on their effort to fully complete their posting, reply, and problem. a. Based on your cvp analysis: 1- Explain your results for the break-even point, margin of safety ratio, and cvp income statement. (35 words - 1.25pts) 2- Provide two reasons (benefits or drawbacks) for making the changes recommended by Hiro. (40 words - 1.25pts) b. Explain and compare the variable per unit and the total fixed cost behavior for your mixed cost example. 1- Explain the per unit variable cost behavior for your mixed cost example. (35 words - 1.25pts) 2- Explain the total fixed cost behavior for your mixed cost example. (40 words - 1.25pts)