Part 3 Cost Volume Profit (15 marks) The entity above prepared the forecasted income statement presented. The entity expects to sell 250,000 units during the next year. Chief Financial Officer (CFO) has been asked to answer the questions below. Costs have over time, been 15% better or 15% worse than forecast for this company (Expected Volatility range). The company is sensitive to fixed cost changes and has a history of surprises in fixed increases. Questions: 1. What is the contribution margin ratio and contribution margin per unit? 2. What are break-even sales dollars and units? 3. What is the safety margin of the forecasted sales level versus break-even sales? 4. Does this level of safety raise concerns, why or why not? 5. The entity prefers operating profit of $500,000. What is the level of required sales dollars and units? 6. Prepare a contribution management accounting financial statement for the data above. 7. If fixed costs increase by $250,000, break-even units will Increase or Decrease and is this within the Expected Volatility range