5 6 7 3 4 A. Calculate the missing amounts in MVP's Income Statement presented for financial reporting purposes below: MVP, Inc. Income Statement For the Year Ended December 31, 2021 8 Sales Cost of Goods Sold: 10. Direct Materials (variable) 11 Direct Labor (variable) 12 Manufacturing Overhead ($40,000 is fixed) 13 Cost of Goods Sold 14 Gross Profit $ 375,000 100,000 21,200 91,500 212,700 162,300 08-D13 15 Operating Expenses: 16 Sales Commissions (variable) 12,500 17 Shipping (variable) 2,500 18 Advertising (fixed) 10,600 19 Billing (of which $10,000 is fixed) 10,250 20 Sales and Administrative Salaries (fixed) 90,900 21 Total Operating Expenses 126,750 22 Operating Income (Loss) $ 35,550 D14-021 23 24 Additional information: 25 Sales Price per unit $15.00 26 27 All variable expenses in the company vary in terms of units sold 28 There was no change in inventory levels between the beginning and end of the year 29 30 B. Using the information above, calculate the missing amounts below: a. Units of product MVP sold in 2021 31 25,000 08/C25 32 Variable cost per unit for the following mixed costs 33 b. Variable Manufacturing Overhead per unit: c. Variable Billing per unit: $ 2.06 (C12-40000)/C311 $ 0.01 (C19-10000/C31 35 B 4 5,300 25.00% E. Redo MVP's Contribution Margin Income Statement using the Vice President of Sales (VP) suggestions and projected increase in sales volume below (all amounts should be a formula/link]: Reduce selling price by Increase advertising costs by S Projected sales volume increase 5.00% 36 Total 67 Units 32,895 Amount Per Unit 68 Sales 468,750 $ 14.25 C68/068 08-(08 25%) -C25-(C25*5%) 69 Variable Costs: 70 Direct Materials $ 125,000 3.80 C10-(C10 25%) -C70/C67 71 Direct Labor n/a n/a 72 Variable Manufacturing Overhead Hint: This amount represents the new selling price as recom Hint: Per unit variable costs are the same as the original inco constant with changes in volume. However, total variab n/a n/a 73 Sales Commissions n/a n/a 74 Shipping n/a N/A 75 Variable Billing n/a n/a 76 71 80 82 77 79 Total Variable Costs Contribution Margin Fixed Costs Fixed Manufacturing Overhead Advertising Sales and Admin. Salaries Fixed Billing Total Fixed Costs n/a n/a / n/a n/a n/a Hint: This amount represents the new advertising costs as recomme a n/a n/a Net Operating Income (Loss) N/A Using the budgeted contribution margin income statement in part E. above, calculate the following 87 a Breakeven in units b. Operating Leverage Multiplier 89 Given a sales volume increase of 8%, operating income will increase by 90 91 c. Percent d. Dollars 92 94 25 IN/A #N/A AN/A N/A