Problem II The income statement for Reprin Company for 2019 appears below. Roprin COMPANY Income Statement For the Year Ended December 31, 2019 Sales (40.000 units)... Variable expenses........... Contribution margin.... Fixed expenses ........................... Net income (loss)........... $1,000,000 700,000 300,000 330,000 $ (30.000 F Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company's break-even point in sales dollars in 2019? 2. How many additional units would the company have had to sell in 2019 in order to earn net income of $30,000 3. If the company is able to reduce variable costs by $2.50 per unit in 2020 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $35,000? Solution Problem III Break-even point in sales dollars in 2019 Contribution Margin Ratio $7.50/25= 30% Additional units would Roprin have had to sell in 2019 Additional units = 30% 30,000 = 9,000 units 3. Units will Roprin have to sell in order to earn a net income of $35,000 in 2020 2019 Variable cost per unit $ 25 Variable cost reduction 2.50 2020 Variable cost per unit s Expected Contribution margin for 2020: Necessary Sales Units in order to eam a net income of $35,000 in 2020