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Please answer all of the parts of the following sheet thanks!! Ch18 Case Study Assignment - Part 3 Cost-Volume-Profit Analysis Problem Hiro is a digital

Please answer all of the parts of the following sheet thanks!! image text in transcribed
Ch18 Case Study Assignment - Part 3 Cost-Volume-Profit Analysis Problem Hiro is a digital marketing manager for the Castle Video Games. Hiro is currently working on a social media promotional campaign that will add $18,000 in fixed costs to Castle's current fixed costs of $54,000. Hiro is also proposing that a 10% sales price decrease (from $40 to $36 per video game) will produce an increase in sales volume from 6,000 to 15,000 units. Variable costs will remain at $28 per video game. 1. Prepare the Break-even point and Margin of Safety Ratio for Castle. \begin{tabular}{l} Break-even point in units \\ Margin of Safety Ratio \\ 2. Prepare the CVP Income Statement (Totals) for Castle. \\ \hline \end{tabular} 2. Prepare the CVP Income Statement (Totals) for Castle. \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|l|}{ CVP Income Statement: } & \multicolumn{1}{c|}{ Current } & Increas \\ \hline Sales revenes & & & \\ \hline Less: Variable costs & & \\ \hline Contribution margin & & \\ \hline Less: Fixed costs & \\ \hline Profit/Loss \\ \hline Ch18 Case Study Assignment - Part 3 (Total 10pts) \\ \hline How Do I Write my Posting? (150 words - 5pts; Completed Problem - 2pts; Total & 7pts): \\ \hline \end{tabular} * Students will be graded on their effort to fully complete their posting, reply, and problem. a. Based on your cvp analysis: 1- Explain your results for the break-even point, margin of safety ratio, and cvp income statement. (35 words - 1.25pts) 2- Provide two reasons (benefits or drawbacks) for making the changes recommended by Hiro. (40 words - 1.25pts) b. Explain and compare the variable per unit and the total fixed cost behavior for your mixed cost example. 1- Explain the per unit variable cost behavior for your mixed cost example. (35 words - 1.25pts) 2- Explain the total fixed cost behavior for your mixed cost example. (40 words - 1.25pts) 3- Upload and attach your completed spreadsheet file to your posting. (Total 2pts)

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