Southwest Fly sells competitive Flying Discs. Currently, the product is manufactured in a clean environment that is very machine intensive. Last year, the company sold 15,000 of these discs, with the following results: Sales Variable expenses Contribution margin $525,000 ($420,000) $ 105,000 Fixed expenses ($ 135,000) Net operating income (loss) ($ 30,000) Required: 1. Compute last year's CM ratio and the break-even point in number of discs. 2. The president feels that the company must raise the selling prices to cover fixed costs. What selling price per disc (as the same number of units) must it charge next year to cover their fixed costs, with no change in variable expenses? (round to $0.01) 3. Engineering has been working hard on a new raw material. With this new design, they believe they can reduce their material costs by 10%. If this change takes place and the selling price per disc remains constant what will be next year's CM ratio and the break-even units? (round units up) 4. Refer to the data in (3) above. The President is insistent that the company make operating income of AT LEAST $25,000. Given this new directive and design, how many discs will have to be sold next year meet their goal?