Why might a multiple-product firm choose to calculate just overall break-even revenue rather than the break-even quantity by product? How do income taxes affect the break-even point and CVP analysis? Explain how a change in sales mix can charge a company's break-even point. Define the term margin of safety. Explain what is meant by the term operating leverage. What impact does an increase in the margin of safety have on risk? What impact does an increase in leverage have risk? Why does the activity-based costing approach to CVP analysis offer more insight than the conventional approach does? Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include: Variable selling expense is the redemption of a coupon, which average $0.80 per T-shift; fixed selling and administrative expenses total $19,000. Required: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio (rounded to four significant digits) e. Total fixed expense for the year Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If hat if the per unit selling expense increased from $0.80 to $1.75? Calculate the new values for the following: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio (rounded to four significant digits) e. Total fixed expense for the year