Stocking Stuffers, Inc. purchases raw materials (stockings and candy) and converts those to finished goods (stuffed stockings).The company uses a Just-In-Time inventory management system for work-in-process and finished goods, so the only inventory on hand at the end of each month is raw materials.Management has given you the following data and instructions:DATAon hand, BOMpurchasedon hand, EOMStockings$8.00 each100-2080Candy (prepackaged)$4.00 each100-3070Labor per piece stuffed$2.00 eachSales Salary$5,000.00 per monthCommission6.0%eachInternet and web site$410.00 per monthProduction facility rent$2,400.00 per monthmodifiable data - from answer keySales Price$30.00 eachcalculatedTarget Profit$2,840.00 per monthstudent entryTax Rate21.0%Expected unit for sensitivity analysis 700 Instructions:1. Calculate the variable cost per unit2. Calculate total fixed costs3. Calculate the contribution margin per unit3a. Calculate the contribution margin ratio4. Calculate the break even point in units5. Calculate the number of units needed to hit the target profit6. Create a contribution margin statement for the target profit7. Based on the target profit, calculate raw materials inventory at cost a. beginning b. purchases c. ending8. Based on the target profit, prepare an income statement using full absorption costing9. Calculate the unit cost for cost of goods sold under full absorption costing10. Calculate margin of safety at target profit a. in dollars b. in units c. as a percentage11. Calculate operating leverage at target profit12. How will profit change if sales price changes by5%increase a. in dollars b. percentage13. How will profit change if sales volume changes by-20%decrease a. in dollars b. percentage14. How will profit change if fixed costs change by-7%decrease and variable cost change by10%increase a. in dollars b. percentage