$12.$ What is the contribution margin if $100,000$ units are sold? $13.$ What is the profit at the break even volume? $14.$ What is the contribution margin at the break even volume? $15.$ What is the break even volume? $16.$ What is the profit at $1000$ units above break even? $17.$ What is the profit at $2000$ units below the break even?

INFO:

Child's Play Company makes a plastic rattle for toddlers. The rattle is generally marketed through

exclusive retailers located in upscale shopping malls. The company used $23$ retailers. In late

$2016,$ Diana Suares, the president of the company, was considering alternative marketing plans

presented to her by Bill Dings, the marketing manager. Based on sales from January through

October $2016,$ Diana expected that $2016$ sales would amount to $300,000$ units at $$8\mathrm{.}00$ per unit.

Diana Suares also had with her some cost data for $2016$ supplied by the CFO, Don Capp. Don

expects that these costs are reliable estimates for a volume up to $400,000$ units. Beyond $400,000$

units, the company would have to rent additional machines $($with a capacity of $100,000$ units each$)$

at an annual cost of $$50,000$ per machine $($in $2016).$ The data are presented in Exhibit A$.$

Total fixed manufacturing and selling and administrative costs are each expected to increase in

$2017$ by $10$ percent because of inflation. Variable costs per unit and the selling price would stay

the same as in $2016.$

Exhibit A $(2016$ Cost Data$)$

Manufacturing costs for rattles $($based on production volume of $300,000$ units$).$

Power, supplies, indirect labor, and

other variable production costs

Supervisory salaries, equipment rental,

and miscellaneous production costs

Selling and administrative costs $($based on sales volume of $300,000$ units$).$

Commissions to sales staff

Shipping

Advertising and promotion

Administrative staff salaries, depreciation

on office equipment, etc

$10\%$ of price to retailer $**$

$$0\mathrm{.}50$ per unit $**$

$$0\mathrm{.}60$ per unit

$$0\mathrm{.}90$ per unit

$**$ These costs vary in total with sales volume.