Question 130 pts (a) Kingston Baker's Ltd. most recent monthly contribution format income statement is given below for 6000 units Sales (1000 units) 90,000 Les variable expenses 67,500 Contribution margin 22.500 Less fixed expenses 18,000 4,500 Net Income Calculate: (a) the company's contribution margin ratio? (2 marks) (b) the breakeven points in units and in dollar sales? (4 marks) (c) the margin of safety in units and dollar value if the company's intention is to sell 10000 units. (4 marks) (d) How many units would the company need to sell if it wishes to make a profit of $25000? (2 marks) (e) If unit sales were increased by 25% and fixed expenses were reduced by $4,000, what would be the company's expected net income? (Prepare a contribution margin income statement to represent your response) (6 marks) (b) The Ryan Corporation manufactures a single product with the following unit cost for 5000 units: Direct Materials Direct labour Manufacturing overheads (40% 129 Selling (6076 variable Admitive expenses (20%) 20 Total unit cost 300 A company recently approached Ryan Corporation about buying 1000 units for $195. Ryan currently sells the models to dealers for $210 per unit. Ryan's capacity is sufficient to produce the extra 1000 units. (i) Should Ryan accept this special order? Justify your answer. (9 marks) (ii) Determine the minimum price that Ryan should sell each unit for in order to make a profits by $10000 on the special order (3 marks) (Total 30 marks)