Tyrene Products manufactures recreational equipment. The operating results for the most recent year for one of its products, a skateboard, are presented below. Variable expenses Centribution margin $ 2,475,888 1,485,888 998,888 792,880 198,800 Het operating income Management is anxious to malntaln and perhaps even Improve its present level of income from the skateboards. Required: 1a. The company's break-even point for the most recent year was 52.800 units. Compute the CM per skateboard. (Do not round Intermediate calculations.) Contribution margin per skateboard 1-b. Compute the selling price and variable expenses perskateboard. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Amount per sistebog Der skateboard tc Compute the number of skateboards sold in the most recent year. (Do not round Intermediate calculations.) Number of skateboards 1-d. Compute the degree of operatng leverage at the level of sales that you computed In Requirement (1C). Degree of operating leverage 2. Due to an increase in labour rates, the company estimates that varlable expenses will increase by $3.00 per skateboard next year. If this change takes place and the selling price per skateboard remains constant, what will be the new CM ratlo and the new break-even point in skateboards? (Do not found intermediate calculations.) Contribution margin Untt sales to break-even point skateboards h 3. Refer to the data In Requirement (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating Income. $198,000, as in the most recent year? (Do not round Intermediate alalations) Number of skatebeards 4. Refer again to the data in Requirement (2) above. The president has decided that the company may have to raise the selling price of Its skateboards. If Tyrene Products wants to maintain the same CM ratio as last year, what selling price per skateboard must It charge next year to cover the increased labour costs? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Selling price 5. Refer to the original data. The company is considering the construction of a new. automated plant. The new plant would result in the contribution margin per unit Increasing by 60%. but it would cause fixed costs to Increase by 90%. If the new plant is built, what would be the company's new CM radio and new break len point in skateboards? (Do not round intermediate calculations.) Contribution margin Unit sales to breakeven point skateboards 6. Refer to the data in Requirement (5) above. a If the new plant is built, how many skateboards will have to be sold next year to earn the same net operating Income. $198.000, as last year? (Do not found Intermediate calculations.) Number of skateboards b-1. Assume that the new plant is constructed and that next year the company manufactures and sells the same number of skateboards as sold in the most recent year. Prepare a contribution format Income statement (Do not round Intermediate Calculations) Contribution Income Statement $ b-2 Compute the degree of operating everage. (Do not round Intermediate calculations.) Degree of operating leverage