IMPORTANT INFORMATION All variable costs are accounted for in the cost of goods sold. All operating expenses are treated as fixed costs. The table below shows the percent changes forecast for 2014. Three Operating Divisions* Sporting Outdoor Indoor Goods Clothing Clothing Sales Revenue +8% +486 -2% Cost of Goods +896 +6% C Sold Operating Expenses Sales & +8% 0% +3% Marketing General & -2% +1.5% +2% Administrative Payroll +2% +3.5% +2.5% YOUR TASKS 1. Top management needs to understand the current 2013 year of operations. Perform the following activities: a. For each division, calculate the net income, total contribution margin, and contribution rate b. For each division, calculate the break-even point in dollars. c. For all three divisions combined, calculate the total revenue dollars required to break even. d. Assuming that 200 units of Sporting Goods, 100 units of Outdoor Clothing, and 50 units of Indoor Clothing were sold, what is the breakeven point in units for each category? 2. Forecast the changes for the 2014 operating year to help management understand how the business is changing, a. For each division, calculate the forecasted net income, total contribution margin, and contribution rate. Express these figures as a percentage of the 2013 numbers b. For each division, forecast the new break-even point in dollars. Express the forecasted break- even points as a percentage of the 2013 break-even points c For all three divisions combined, calculate the total forecasted revenue dollars required to break even and express the total break even point as a percentage of the 2013 total break-even point 3. Write a report to management about your findings for each department and the company as a whole for the 2014 year You will get the opportunity to dis