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Warwick Corporation's controller is preparing a business plan for 20X9. The anticipated level of business activity consists of the following key cost factors: Warwick's Bank has issued an economic advisory report suggesting that companies should anticipate a severe economic downturn during 20X9. Determine the level of volume reduction that Warwick can absorb before becoming unprofitable. Distinguish between committed fixed costs and discretionary fixed costs. What is the importance of this distinction in planning for business cycles? Super Sharp manufactures and sells two products. The first product Is a disposable shaving razor blade that lasts about 7 days. The second product is shaving cream. Customers of the first product use one bottle of shaving cream every 28 days. As a result, razor blades outsell shaving cream by a 4:1 ratio. Shaving Cream sells for $8 per bottle, and has a contribution margin ratio of 50%. The razor blades sell for $3 per blade, but only generates variable costs of $1.50. The company's total fixed costs are $3, 500,000. What level of total sales is necessary to achieve break even? If a competitor began selling razors that forced Super Sharp to reduce the price for its razors to $2.50 (to maintain market share and the 4:1 ratio of razors to shaving cream), how many Razor sets must be sold for the company to break even