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Polaris, Inc., manufactures two types of metal stampings for the automobile indus- try: door handles and trim kits. Fixed costs equal $146,000. Each door handle

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Polaris, Inc., manufactures two types of metal stampings for the automobile indus- try: door handles and trim kits. Fixed costs equal $146,000. Each door handle sells for $12 and has variable costs of $9; each trim kit sells for $8 and has variable costs of $5 Required 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? income? break even? trim kits. If this is done, fixed costs will decrease by $35,000, and 70,000 trim 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating 3. How many door handles and how many trim kits must be sold for Polaris to 4. Assume that Polaris has the opportunity to rearrange its plant to produce only kis can be produced and sold. s this a good idea? Explain

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