The following information is available for Rita's Snowmobile Rentals, Inc.: Total fixed costs $7,800 Unit sales price $150 per hour Unit variable cost $30 per hour 1) Compute the contribution margin per rental hour. 2) Compute the contribution margin ratio. 3) Compute the break-even point in hours. 4) Compute the break-even point in sales dollars. 5) Calculate the hours needed to earn $27,000 in operating income. 6) If Rita's decreases the sales price to $130 and has no changes in variable or fixed costs, calculate the hours needed to break even. 7) If Rita's decreases the sales price to $130 and has no changes in variable or fixed costs, calculate the hours needed to earn $27,000 in operating income. 8) Suppose Rita's decides to pay their salespeople on commission. With sales price at $150 per unit, variable costs per unit will increase by $15 per unit, while fixed costs will decrease by $2,760. What is the new break-even point in hours? 9) Suppose Rita's decides to pay their salespeople on commission. With sales price at $150 per unit, variable costs per unit will increase by $15 per unit, while fixed costs will decrease by $2,760. What is the number of rental hours needed to earn $27,000 in operating income? The following information is budgeted for the Winter Blues Company for 2020: Units 10.000 Sales Revenues $1,200,000 Cost of goods sold: Direct materials and labor costs (variable) 275.000 Overhead (40% variable) 415.000 Total cost of goods sold 690.000 Gross margin 510,000 Operating costs: Selling costs (variable) 80,000 Administration costs (fixed) 360.000 Total operating costs 440,000 Operating income $70,000 1) What is the average selling price per unit? 2) Calculate fixed overhead in cost of goods sold. 3) Calculate variable overhead costs per unit in cost of goods sold. 4) Calculate the variable selling costs per unit. 5) Assume sales units are 8,000 units at the same selling price per unit as 10,000 units. Calculate budgeted cost goods sold. 6) Assume sales units are 8,000 units at the same selling price per unit as 10,000 units. Calculate budgeted administrative costs. 7) Assume sales units are 8,000 units at the same selling price per unit as 10,000 units. Calculate budgeted operating income / loss. Kringle Products manufactures and sells to wholesalers 200,000 packages per year of sugar cookies at $5.00 per dozen. Annual costs for the production and sale of this quantity are shown in the following table: Direct materials $240,000 Direct labor 60,000 Overhead 200,000 Selling expenses 100,000 Administrative expenses 50.000 Total costs and expenses S650.000 A new wholesaler has offered to buy 30,000 packages for $3.50 each. These packages would be marketed under the wholesaler's good name and would not affect Kringle Products's sales through its normal channels. A study of the costs of this additional business reveals the following: Direct materials costs are 100% variable Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at times the usual labor rate. Forty percent of the normal annual overhead costs are fixed at any production level from 150,000 to 300,000 units. The remaining 60% of the annual overhead cost is variable with volume. Accepting the new business would involve an additional 10% sales commission on the new order. Accepting the new business would involve no additional administrative expenses. 1) What is the direct materials rate per package? 2) What is the direct labor rate per package that is to be used in the analysis? 3) What is the variable overhead rate per package? 4) How much commission would be due on the special order? 5) What is the expected income for the special order? 6) Should Kringle Products accept the special order