The Belay Company buys hiking socks for $6 per pair and sells them for $10. Management budgets monthly fixed costs of $8,000 for sales volumes between 0 and 12,000 pairs of socks. Read the requirements. Requirement 1. Calculate the breakeven point in units. Select the labels and enter the amounts to find the breakeven point in units. (Enter a "0" for any zero amounts. Abbreviation used: CM = contribution margin.) + Fixed costs 8,000 + + $ Target profit 0 )1 / $ CM per unit 4 = = Required sales in units 2,000 ( $ + Requirement 2. The Belay Company reduces its sales price from $10 per pair to $8 per pair. Calculate the new breakeven point in units. The new breakeven point in units is 4,000 Requirement 3. The Belay Company finds a new supplier for the socks. Variable costs will decrease by $1 per pair. Calculate the new breakeven point in units. The new breakeven point in units is 1,600 Requirement 4. The Belay Company plans to advertise in hiking magazines. The advertising campaign will increase total fixed costs by $6,400 per month. Calculate the new breakeven point in units. The new breakeven point in units is 3,600. Requirement 5. In addition to selling hiking socks, The Belay Company would like to start selling sports socks. The Belay Company expects to sell one pair of hiking socks for every three pairs of sports socks. The Belay Company will buy the sports socks for $9 per pair and sell them for $13 per pair. Total fixed costs will stay at $8,000 per month. Calculate the breakeven point in units for both hiking socks and sports socks. First, complete the table below to calculate the weighted-average contribution margin. Sports Total Sales price per unit $ 13 Hiking Variable cost per unit Contribution margin per unit Sales mix in units Contribution margin Weighted average contribution margin per unit