I. (40 points). Recommended Time: 50 minutes. Score: Premium Digestive Biscuits, Inc. sells high-end cookies at a sales price of $13.00 per package. The company produces 100,000 packages a year. The biscuits are popular with Starbucks Coffee customers. The following annual costs apply to the production of each package: Material costs Labor costs Variable overhead Variable selling costs Fixed costs Instructions: $ 3.20 2.20 4.80 .40 245,000 For each question, show your calculations labeled and in good form to receive credit. 1. Calculate the contribution margin in total dollars, contribution margin on a per unit basis, and compute the contribution margin ratio. Include the variable selling costs in your variable cost calculation. 2. Using the results in Question 1, explain if the company is recovering all of its costs on annual basis, selling 100,000 packages a year? 3. Calculate the break-even point in units. 4. Calculate the break-even point in sales dollars. 5. Assume management is seeking a profit of $40,000 a year. Calculate target net income in units. 6. Assume management is seeking a profit of $80,000 a year. Calculate target net income in sales dollars. 7. Assume expected sales are $1,554,000, calculate the margin of safety in dollars. 8. Using the results in Question 7, calculate the margin of safety ratio