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Question 5 (Total 15 marks) Sports Plus manufactures footballs and soccer balls. Total fixed cost for the period is $250,000. The selling price of a football is $50 per unit and has a variable cost of $20 per unit, and the selling price of a soccer ball is $35 per unit with a variable cost of $10 per unit. The expected sales mix is two footballs to one soccer ball. Required: 1. What is the contribution margin per unit and the contribution margin ratio for footballs and soccer balls? 2. If Sports Plus sells 20,000 footballs and 10,000 soccer balls, what is the operating income? (show your calculations using a contribution margin income statement). 3. How many footballs and soccer balls must be sold for Sports Plus to break-even? (Round amounts to the nearest whole number). 4. Assume that Sports Plus can reorganize its factory to produce footballs only. If this is done, total fixed costs will decrease by $50,000, and 50,000 footballs can be produced and sold. Explain if this is a good idea and whether Sports Plus should go ahead with the rearrangement to its factory to produce footballs only. Show calculations using a contribution margin income statement to justify your recommendation. (2 + 3+ 6+4 = 15 marks) Start your answer here