You have been asked by the management of Symmetry Designs, a company that manufactures furniture, to provide an explanation for the importance of volume in their business. They present you with the following information from their budget for the current year: $1,000,000 Fixed $0 0 Sales (100,000 units) Costs: Direct Material Direct Labor Factory Overhead Selling and Administrative Total costs Budgeted Income Variable $300,000 200,000 150,000 50,000 $700,000 100,000 110,000 $210,000 910,000 $90,000 Respond to the following questions from management. (Be sure to show your calculations): (a) (5 points) What are the variable costs per unit? The variable costs per unit would be $7.00. Calculation: 700,000 variable costs / 100,000 units (b) (5 points) What are the fixed costs per unit based on the budget? The fixed costs per unit based on the budget would be $2.10 per unit. Calculation: 210,000 fixed costs / 100,000 units (c)(3 points) What is the contribution margin per unit? (d) (3 points) What is the company's breakeven point? (e) (3 points) The company would like to earn a profit of 15% of sales in the next year. However, the lease on the factory equipment will be increasing by $25,000. If they raise the selling price by 5% and hold variable costs steady, how many units will they have to produce and sell to earn 15% of sales? CVP Using Budget Data