KENTUCKY CORPORATION . . is a bookkeepingi rm that helps business set up their computerized accounting systems for their business. The company charges $1,000 for the entire basic setup package and plans to file 1,500 setups next year. The company's projected income statement for the coming year is. Sales $1,500,000 Variable costs 1,050,000 Contribution margin 450,000 Less: xed costs 240,000 Operating income $210,000 1. Compute the contribution margin per setup. In words, what does this mean? 2. Calculate the breakeven point in number of setups (round to the nearest whole unit, since it is not possible to do a partial setup). Explain in words what this indicates. 3. Calculate the contribution margin ratio and the break-even sales revenue. What is the meaning of contributionmargin ratio? 4. Construct a C-V-P graph for the company. 5. The company is concerned about the possibility that he may actually lose money this upcoming year and wants to know how much error there is in his forecast. By how many setups can his sales drop before he starts actually losing money? 6. In terms of sales dollars, how far can revenues drop before they start losing money? 7. If the company wants to have operating income of $360,000 next year, how many setups must they process (round to the nearest whole unit)? 8. What dollar level of sales is required to achieve the operating income of $360,000? 9. The company is considering raising their sales price to $1,200 per setup. a) What effect (in words) will this have on the breakeven point in setups and WHY? b) What will be the new breakeven point in setups and revenues? 10. The ofce manager for the company has proposed that they increase advertising (a xed cost) for the upcoming year by $90,000; she feels that this increase in advertising will lead to an inCrease in sales of $400,000. Assume that the sales price remains at $1,000 per setup