Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 21 13 4 N $ 330,000 $ 150,000 During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000 units and sold 30,000 units. In its third year, Haas produced 20,000 units and sold 45,000 units. The selling price of the company's product is $52 per unit. Increase to costs: The production manager is anticipating an increase to labor rates in the coming year such that variable expenses will increase by $1.50. Hint: You may want to update the Profit formula for this change to assist in the calculations required here. Remember to consider this change to the "base" assumption and disregard your work in 10) a) What will the CM ratio and Break-Even point in units be with the labor increase? Note - Requirement asks for CM ratio, NOT contribution margin in dollars or contribution per unit. 6 b) If they produce and sell the same number of units for Year 4, what will their new Net Operating Income, NOI, be? c) How many units will Haas need to sell to maintain the same operating income as originally planned for Year 4? Note: Check figures must be supported to earn credit for grading purposes. d) Assume Haas Company wants to earn a profit of $50,000 for Year 4 with "base" assumption of units produced/sold and the cost increase discussed here. What sales price (price per unit) should they use to sell their product