Part 1 Using the information on page 1, answer the following questions Include all costs (manufacturing costs and selling and administrative costs) in your calculations Prepare a CVP Income Statement for 2018 using the current production and sales volume (20,000 high chairs) and the current cost data, assuming no changes to selling price or costs Baby Center Ltd CVP Income Statement For the Year Ended December 31, 2018 Total Per Unit 4.c0 4,50 4, 50 nue (0 80000 040,000 136 i54 2. Using the above CVP Income Statement, determine the Company's contribution margin ratio for 2018. Round to zero decimal places. t da 3. Using the 2018 cost data, determine the 2018 break-even point in number of high chairs for the elements of your computations. Round to the nearest next whole unit. otal Sined Coes 136000:9379.9380 nigh $14.40 (i buton ma iin per unir , Assuming the selling price and cost changes in the Marketing Plan are adopted, prepare a CVP Income Statement for 2019, assuming sales and production increase by 25% as outlined in the Marketing Plan. 4. Baby Center Ltd. CVP Income Statement For the Year Ended December 31, 2019 Total Per Unit enue (coo0) 63,00 41837500 313500 140400 Contribuhon maran 4 1a.50 Net Incom 5. Answer the following two questions: What is the change in Net Income from 2018 that Baby Center would realize if they adopted the marketing plan in 2019? a. et in com 2018 154 00O et Incom 1a:41 na100-54000 17 ilco increase b. Should Baby Center adopt the marketing plan for 2019? Yes, it snows an increase in net income 6, using the CVP Income Statement prepared in #4 above, determine the Company's contribution margin ratio for 2019. Round to zero decimal places. ao.16% :> 120% $19.50 62.00 . 7. Assuming the selling price and cost changes in the Marketing Plan are adopted, determine the break-even point in number of high chairs for the company in 2019. For full credit please show the elements of your computations. Round to the nearest next whole unit 400 HoOO1133 units a 50 ontibuton marn: 412.5 8. Assuming the selling price and cost changes in the Marketing Plan are adopted, determine the number of high chairs the company would need to sell in 2019 in order to earn $200,000 in profit. For full credit, please shcw the elements of your computations. Round to the nearest next whole unit Part 2 Baby Center Ltd. has been approached by the government, which is seeking to buy 15,000 high chairs for its day care centers in 2019. The proposed government contract states that the government would pay Baby Center a price of $42 per high chair. If Baby Center decides to accept this special order they would avoid packaging costs for this contract as well as all variable selling and administrative costs. The company's capacity is limited to only 30,000 units. If they accept the government contract, they will need to increase their capacity by renting an additional machine. Refer to page 1 for the company's estimated cost data and additional machine rental cost. Assume that Baby Center does not adopt the proposed Marketing Plan and that the company's production and sales level without the government contract is expected to be 20,000 high chairs for 2019. Prepare an analysis below to determine the incremental net income or net loss that Baby Center would recognize if they accept this speciai order. 1. 2. Should Baby Center accept or reject the government contract