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122 113 Requirements: 114 115 Multiply the lowest digit (other than zero) from the last four digits of you student ID number by 10,000 and 116 enter for C. below. 117 118. The vice president suggests that the selling price be lowered by 10% and advertising be reduced by CS 50,000.00 119 She is confident that this action will increase sales to 60,000 units. 120 121 The new selling price price per unit would be $9.00 122 The new total advertising would be 450,000.00 124 125 126 127 128 129 b. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember when volume changes (number of units). 130 total variable costs chance proportionately. To get total variable costs, multiply the per unit amounts from Requirement 3 by the new number of units, 131 132 Total Units Amount 133 60,000 Per Unit 134 135 Sales New from above 136 Variable costs 137 Direct materials 138 Direct Labor 139 Variable MOH 140 Sales commissions 141 Shipping 142 Variable billing 143 Total Variable costs 144 Contribution Margin 145 Fixed Costs 146 Fixed MOH 147 Advertising New from above 148 Sales and admn salaries 149 Fixed billing Total Fixed Costs 151 Net Operting income 152 153 CVP Project 150 Ready HL