Super Rich Business Person (SRBP) is opening a new merchandising company, COMPANY 2. SRBP owns several companies, but COMPANY 1 is very similar to COMPANY 2 (market size and characteristics, product types, expected demand/supply, etc.). Because the two companies are so similar, SRBP is going to use COMPANY 1 as a source of estimated prices and costs for COMPANY 2. COMPANY 1 has been in operation for seven years, and it's most recent Income Statement is presented below. Note that this income statement has been prepared especially for this purpose. SRBP's accountant prepared it to show both cost function AND cost behavior COMPANY 1 Income Statement For the year ended 20X6 Total Units 2,500) Sales, Gross Sales Discounts Sales Returns & Allowances Sales, Net Cost of Goods Sold (variable) Gross Profit Variable Selling Expenses Variable Administrative Expenses Fixed Selling & Administrative Expenses Net Income 275,000 (2,000) (5,500) (7 500) 267,500 (165,000) 102,500 (19,250) (13,750) (43,250) (76,250) 26,250 A total of 2,500 units were sold at COMPANY 1 during the year. All sales accounts are variable in nature (Sales, Gross; Sales Discount; Sales Returns & Allowances; and Sales, Net) Based on the information given above, answer the following Cost-Volume-Profit Analysis questions: 1. SRBP will be using COMPANY 1 as an estimate for all information in COMPANY 2. Please list all revenues and expenses of COMPANY 1 (i.e., Sales and Expenses) as constants, whether the per unit or total amount (i.e., if an amount is constant as a per unit amount, calculate it as a per unit amount, if constant at the total amount, list it as a total amount) 2. 3. 4. Based on these estimates, what is the expected Contribution Margin per unit for COMPANY 2? What is COMPANY 2's expected Breakeven Point in units? If COMPANY 2 wants an expected yearly profit of $50,000, how many units would they need to sell