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Trevino Company makes and sells products with variable costs of $24 each Trevino incurs annual fixed costs of $315,000 The current sales price is $87e

Trevino Company makes and sells products with variable costs of $24 each Trevino incurs annual fixed costs of $315,000 The current sales price is $87e If fixed costs drop to $280,000,

a. Determine the contribution margin per unit.

b-1.Determine the break-even point in units and in dollars.

b-2.Prepare an income statement using the contribution margin format.

c-1.Suppose that Trevino desires to earn a $252,000 profit. Determine the sales volume in units and dollars required to earn the desired profit.

c-2.Prepare an income statement using the contribution margin format.

d-1.  If the sales price drops to $80 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars.

d-2Prepare an income statement using the contribution margin format.

e-1.If fixed costs drop to $280,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars.

e-2.  Prepare an income statement using the contribution margin format.

f-1.  If variable cost rises to $30 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars.

f-2.  Prepare an income statement using the contribution margin format.

g.  Assume that Trevino concludes that it can sell 10,000 units of product for $80 each. Recall that variable costs are $30 each and fixed costs are $280,000. Compute the margin of safety in units and dollars and as a percentage.

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