Fill in the question marks with the missing amounts. Please show your calculations (3 marks):

Case	Unit SP	Unit VC	CM per unit	CM ratio
1	$25	$10	d) ?	e) ?
2	$1,200	b) ?	$450	f) ?
3	a) ?	c) ?	$80	40.00%

PART 2:

Halloween Company produced two kinds of trick or treating candy: Black and Orange. Information regarding the products is summarized for the month of April in the following table.

	Black	Orange	Total
No. of units	700	300	1,000
Sales revenue	$7,000	$4,500	$11,500
VC	5,600	3,600	9,200
FC	1,000	700	1,700
Operating income	$400	$200	$600

a) If Halloween Company sells 4 more Black units, by how much will profit increase? (3 marks)

b) If Halloween Company wants an operating income of $500 for the Orange line, how many Orange units must it sell to reach that target profit? (ignore income taxes) (4 marks)

c) Halloween Company is contemplating decreasing the selling price of their Black units by 10%. Management thinks that this action will result in 780 units sold. There will be no change in variable cost per unit, nor any change in total fixed costs. Should Halloween Company decrease the selling price? (Show how much operating income will increase or decrease if they do it.) (7 marks)