Scenario 1 Scenario 2 Scenario 3 After some extensive market research, Copeland has determined that a sales price increase of $2 per unit will not affect the sales volume and will be effective immediately. CM per unit: Q ~/ Break-even units: ~/ units Copeland has been experiencing quality problems with a materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit. CM per unit: '/ Break-even units:- V units Copeland will dispose of a machine in the factory. The depreciation on that equipment is $500 per month. CM per unit: $E] V/ Break-even units: :] X units The break-even point can be expressed in terms of sales dollars or number of units. The breakeven units tells us how many units must be sold so that operating income is $0. Assume that you are part of the accounting team for Copeland Hardware. The company currently expects to sell 650 units for total revenue of $20,250 each month. Copeland Hardware estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $6,750 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Copeland Hardware Contribution Margin Income Statement Less: Variable costs ./ J > Contribution margin J .5- J Less: Fixed costs ./ Operating income m A Copeland Hardware is examining cost behavior patterns. Your recommendation is to rst determine the break-even point in units. First, calculate the contribution margin (CM) per unit (rounded to the nearest dollar). Q VI Next, complete the formula below to determine the break-even units. Total Fixed Costs / Contribution Margin per Unit = Units