PLEASE TO DO QUESTION ( VIII) ONLY.

Question 2 Baker Company sells one product. Management estimates that the company will sell 6,000 units of the product each year. The relevant information about the product line of Baker Company for the year ended December 31, 2014 appears below: There was no inventory in stock at the beginning or end of the year. Required: i) What was the selling price per unit? ii) Prepare a contribution margin statement for Baker Company. iii) What is the contribution to sales ratio? iv) Use the contribution margin approach to compute Baker Company's breakeven point in dollars. v) Given the expected sales of 6,000 units, graph Baker Company's CVP relationships, clearly showing the breakeven point in units and in sales dollars; the margin of safety in units and dollars; operating profit area and operating loss area. [use a scale of 2cm to represent 1,000 units on the x-axis and 20cm to represent $100,000 on the y-axis1. vi) Baker Company's profit objective for the month is to earn a target operating income of $90,000. Use the income statement equation approach to compute the number of units that must be sold to achieve this goal? vii) If Baker Company's fixed expenses could be decreased by $18,000, what would be the new break-even sales in units and dollar sales? viii) Assume that direct material costs per unit decreased by $5, but expected unit sales of 6,000 units would decrease by 10% despite an increase in total fixed costs of $85,800. What must Baker's new selling price per unit be in order to meet the target operating income of $90,000