Selling price per unit is $10 and variable manufacturing overhead is 30 cents per unit. All variable expenses in the company vary in terms of units sold (produced). There was no change in beginning or ending inventories. Ashton's plant has a capacity of 80,000 units per year. The company has been operating at loss for several years. Management is studying several possible courses of action to determine what should be done to make next year profitable. Requirement 3: Redo Ashton's 2013 income statement in contribution margin format, showing both a total column and a per unit column in the space provided below. (Hint: Divide the total column by units to get per unit amount) Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. ( 2 decimal places Show your work. Answer b. If sales increase by 20%, operating income will increase by: Do not change rows or colums on this spreadsheet. Input areas are in yellow. Presented below is Ashton Company's Income Statement prepared using absorption costing: (Please assume that Ashton Company sells all units it prododuces) Requirement 1: Replace the two unknown amounts (?) in A. and B. as directed. To find the unknown for B, you will have to complete Requirement 2 . Then, complete the totals on the income statement. Requirement 2: Billing costs for the past 5 years along with total units sold follows: digit from the last four digits of your student ID entered above result here It 2 below and insert result Use the high-low method to calculate the following: Requirment 4: Calculate Ashton's current breakeven point in both units and dollars. Show your work. Units: ANSWER Be per unit = TFC per unit / CMR \begin{tabular}{|l|r|} \multicolumn{1}{|c}{} & ANSWER \\ \multicolumn{1}{|c}{} & \\ \hline Units & 10.75 \\ \hline \end{tabular} Dollars: BE=TFC/CMR \begin{tabular}{|l|l|} \hline Dollars & $483,892.03 \\ \hline \end{tabular} . Prepare a new contribution margin income statement, using the vice president's recommendation. Remember, when volume changes (number of units), otal variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement 3 by the new number of units