Intersection Driving School charges $1,200 per student to prepare and administer written and driving tests. Variable costs of $720 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $240,000 include the training facility and fleet of cars.

Requirements are Below

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Requirements a. 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: Breakeven point with no change in information. b. Decrease sales price to $800 per student. Decrease variable costs to $600 per student. d. Decrease fixed costs to $196,800. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. C. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven pointi units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) Net sales revenue per unit Variable costs per unit CM per unit Situation a. $ 250 $ 100 $ 150 Situation b. $ 200 100 $ 100 Situation c. c $ 250 S 50 = $ 200 Situation d. . $ 250 100 = $ 150 S S Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) 1 Required sales in units 500 Situation a ( Fixed costs ($ 75,000 ( ($ 75,000 ($ 75,000 Situation b. + Target profit ) + CM per unit + $ 0 ) + S 150 + $ 0 0 ) + S 100 + $ 0 ) + S 200 + $ 0 ) + S 150 750 Situation c. 375 Situation d. ( $ 60,000 400 Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. when the sales price decreases. The contribution margin increases when variable costs decrease. The contribution margin does not change when The contribution margin decreases the fixed costs decrease. Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units. when the sales price decreases. The breakeven point decreases when the variable costs decrease. The breakeven point decreases when fixed The breakeven point increases costs decrease