marks) of the year and is presented below. The chief financial officer of Andorra Company has prepared the contribution margin income statement Andorra Company Contribution Margin Income Statement Sales 8.000 units) Variable costs Contribution margin Fixed costs Net income $320,000 22.000 96.000 60.000 $16.000 Required: i. Compute the company's Contribution margin per unit and Contribution margin ratio. (2 marks) ii. Compute the compttry's break-even point in units, and break-even point in dollars. (2 marks) iii. Assume the company is considering investing in a new machine that will increase its fixed costs by $24,000 per year and decrease its variable costs by $4 per unit. Compute the company's new Contribution margin per unit and Contribution margin ratio. (2 marks) iv. Assume the same information as in (iii.), compute the company's new break-even point in units, and break-even point in dollars. (2 marks - Explain the meanings of Variable Cost and Fixed Cost in your own words. (2 mark