Question-4 CVP computations. Acumen Production sold 610,000 units of its product for $58 per unit in 2002. Variable cost per unit is $40, and total fixed costs are $1,120,000 Required: 1. Calculate (a) contribution margin and (b) operating income 2. Acumen production is labor intensive. David production manager has proposed investing in equipment, which will increase the annual fixed costs to $2,850,000. The variable costs are expected to decrease to $26 per unit David expects to maintain the same sales volume and selling price next year. How would acceptance of David's proposal affect your answers to (a) and (b) in requirement 1? 3. Should Acumen accept David's proposal? Explain. I 1001 D w