erial) ACCT& 203 -Principles of Accounting III (Manag amVP, Absorption-Variable Costing and Short Term Decisions 10 poiats lating to its Washington, has the following selected information re 4. Tasty Food Co. located in Renton, operations Selling price per unit Variable Cost per unit Total Fixed Costs Number of units sold $15.50 9.00 $1,625,000 375,000 The selling price of the company's product is currently at the maximum amount that the market will accept Tasty's management believes that any increase in sales price will result in lost unit sales For the upcoming year, Tasty's accountants have estimated that unit variable costs will increase by 8% and unit sales will decrease by 5%. Compute the amount that the company must reduce its fixed costs by for ane uocomin in order to earm the same amount of profi they are currently earming Assume that there are no other changes. 10 points . The Sweet Corporation reported the following information for the year ended December 31, 2017 Net Sales Cost of Production Marketing and distribution Other expenses Total Expenses Operating Income $151,350 $105,000 $16,350 $9,000 75% variable, 25% fixed 40% variable, 60% fixed 100% fixed 21,000 The company sold 10,000 pounds of sugar during 2017 For 2018, the company expects other expenses to increase by 2 also expects to sell all of the sugar that they produce. There will be no ending inventories of sugar. There are no other changes expected for 2017. All variable cost relatioeships are expected to remain the same. 5% and unit sales to increase by 20%. The company Round ALL cost per unit computations to two decimal places. Show supporting computations in good form Reguired: a. Compute the breakeven point in units for the year 2017 b. Compute the operating income for the year 2018. S Round UP to the ncarest wholk unit) (Round to the nearest whole dollar)