CVP with Activity-Based Costing and Multiple Products Busy-Bee Baking Company produces a variety of breads. The plant manager would like to expand production into sweet rolls as well. The average price of a loaf of bread is $1. Anticipated price for a package of sweet rolls is $1.50. Costs for the new level of production are as follows: Unit Variable Cost Level of Cost Driver Cost Driver Loaf of bread $0.65 Package of sweet rolls $0.93 Setups $300 250 $15 3,500 Maintenance hours Other data: Total fixed costs (traditional) Total fixed costs (ABC) $185,000 57,500 Busy-Bee believes it can sell 600,000 loaves of bread and 200,000 packages of sweet rolls in the coming year. Required: 1. Prepare a contribution-margin-based income statement for next year. Be sure to show sales and variable costs by product and in total. Total Busy-Bee Baking Company Contribution-Margin-Based Income Statement Bread Sweet Rolls Sales 600,000 300,000 Less: Variable cost 390,000 186,000 900,000 576,000 Contribution margin 210,000 114,000 324,000 Less: Fixed costs 185,000 Operating income 139,000 Feedback 2. Compute the break-even sales for the company as a whole using conventional analysis. Round your answer to the nearest dollar. 3. Compute the break-even sales for the company as a whole using activity-based analysis. Round your answer to the nearest dollar. 4. Compute the break-even units of each product in units. In your computations, round amounts to the nearest cent. Round your final answers to the nearest whole number of units. Break-even loaves of bread Break-even packages of sweet rolls Does it matter whether you use conventional analysis or activity-based analysis? No 5. Suppose that Busy-Bee could reduce the setup cost by $100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units of each product must be sold to break even in this case? Round your answer up to the next higher whole unit (for example, 50.3 units rounds to 51). In your computations, round amounts to three decimal places. Break-even loaves of bread Break-even packages of sweet rolls