USS UL 0552 structures for the business. Option A has relatively higher variable costs per unit shipped but lower opposite-relatively lower variable costs in its cost structure but higher fixed costs. Assume that del below contains critical information in making the decision: Cost Information Option A Option B $100 $100 Delivery price (revenue) per shipment Variable cost per shipment delivered $85 $60 Contribution Margin per unit $15 $40 Fixed costs (annual) $1,200,000 $4,500,000 1) What is the break-even point in terms of volume i.e., number of shipments per year, for Option A? Option B? (2) How many shipments would have to be made under Option A to produce operating income of $30,000 for an annual period? (3) How many shipments per year would have to be made under Option A to produce an operating margin equal to 9% of sales revenue? (4) How many shipments are required under Option B to produce net income of $180,000 per year. given a corporate tax rate of 40%? (5) Assume that for the coming year total fixed costs are expected to increase by 15% for each of the two options. What is the new break-even point in terms of number of shipments, for each option? By what percentage did the break-even point change for each case? How do these figures compare to the percentage increase in budgeted fixed costs? (6) Assume an average income tax rate of 20%. What volume (number of shipments) would be needed to generate net income of 5% of revenue for each option? (7) Which option do you think is the more profitable one for this business? Explain. (8) Which option do you consider to be more risky to the business? Explain (calculate degree of operating leverage to help answer this question)