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Plata produces and sells plastic storage containers. Last year, Plata sold 125,000 units. The income statement for Plata, Inc., for last year is as follows:

image text in transcribed Plata produces and sells plastic storage containers. Last year, Plata sold 125,000 units. The income statement for Plata, Inc., for last year is as follows: Required: 1. Compute the break-even point in units and in revenues. Compute the margin of safety for last year. 2. Suppose that the selling price increases by 10 percent. Will the break-even point increase or decrease? Recompute it. 3. Suppose that the variable cost per unit increases by $0.35. Will the break-even point increase or decrease? Recompute it. 4. Can you predict whether the break-even point increases or decreases if both the selling price and the unit variable cost increase? Recompute the break-even point incorporating both of the changes in Requirements 1 and 2 . 5. Assume that total fixed costs increase by $50,000. (Assume no other changes from the original data.) Will the break-even point increase or decrease? Recompute it

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