Theory 10 MARKS 1. Distinguish between a traditional income statement and a CVP income statement. 5 Marks 2. Define Mixed Costs, using a simple graphical representation if desired. Identify the steps involved in the High Low Method that allows for the determination of the components of a Mixed Cost. 5 Marks Problems Chapter 5 Pavillion Corp's activity for the first for months of 2022 is as follows: Units Total Cost January 2,100 $36,000 February 2,600 $43,500 March 2,900 $48,000 April 2,700 $45,750 Required: 30 MARKS 15 MARKS a) Using the High-Low method, compute: i. the variable cost component of the Total Costs. ii. the fixed cost per month for Pavillion Corp. 2 Marks 2 Marks b) Based on your answer from part (a) above, if the company's selling price per unit is $25.00, compute: i. the contribution margin per unit. 1 Mark ii. the contribution margin ratio. 1 Mark iii. breakeven point in units and dollars ($). 3 Marks iv. sales ($) required to earn a Target Income of $12,500. 2 Marks V. margin of safety ($) and margin of safety ratio, if the company expects to sell 3,000 units in May. 4 Marks