Sportsbags Inc. makes and sells backpacks for students. Financial projections for this line of products are revenue of $883,000, total variable costs of $217,970, and fixed costs of $535,000.

Answer each of the following independent questions.

(a) How much is the contribution margin and the contributionrate?

(b) How much of this product line does the business need to sell to breakeven?

(c) If the business was to save $8000 in variable costs by offering fewer colours of backpacks, how much of this product line does the business need to sell to breakeven?

(d) If a specialized logo was printed on the backpacks, the variable costs would increase by 9%, and the fixed costs would increase by $10,000. If the price of the backpacks was then increased by 2%, what would be the resulting netincome?

(a) The contribution margin is $