Garrett Manufacturing sold 410,000 units of its product for $68 per unit Variable cost per unit is $60, and total fixed costs are $1, 640,000. Calculate (a) contribution margin and (b) operating income. Garretts current manufacturing process is labor intensive. Kate Schemata which wall annual fixed costs to $5, 330,000. the variable costs are expected to decrease to $54 per unit. except to maintain the same sales volume and selling price next year. How would proposal affect your answers to (a) and (b) in requirement 1? Shoals garret accept proposal? Explain. Brilliant Travel Agency Toronto and Jamaica It books passengers on Ontario Air Brilliant's fixed costs are $36,000 per Ontario Air charges passengers $1, 300 per round-trip ticket. Calculate the number of tickets Brilliant must sell each month to break even and make income of $12,000 per month in each of the following independent cases. Brilliant's variable costs are $34 per ticket. Ontario Air pays Brilliant 10% commission Brilliant s variable costs are $30 per ticket Ontario Air pays Brilliant 10% commission Brilliant's variable costs are $30 per ticket. Ontario Air pays $46 fixed commission per Comment on the results. Brilliant's variable costs are $30 per ticket. It receives $46 commission per ticket from charges its customers a delivery fee of $8 per ticket Comment on the results. the Incredible Donut owns and operates six doughnut outlets in and Kansas City. You are given the following corporate budget data for next year: Variable costs change based on the number of doughnuts sold. Compute the budgeted operating income for each of the following deviations from the original budget (Consider each case independently.) An 11% increase in contribution margin, holding revenue constant an 11% decrease in contribution margin, holding revenues constant A 4% increase in fixed costs A 4% decrease in fixed costs A 7% increase in fixed costs A 7% decrease in fixed costs an 11% increase in fixed costs and a 11% increase in units sold A 4% increase in fixed costs and a 4% decrease in variable costs Which of these alternatives yields the highest budgeted operating income? Explain why this the case