Problem: Module 5 Textbook Problem 1 Learning Objectives: 5-3 Identify and describe fixed, variable, and mixed cost behavior . 5-4 Demonstrate the effects of operating leverage on profitability Franklin Corporation Incurs the following annual fixed costs. Item Depreciation Officers salaries Long-term lease Property taxes Cost $ 61,000 140,000 55,000 8,000 Required Determine the total fixed cost per unit of production, assuming that Franklin produces 2,500, 3,000, or 3,500 units. (Round your answers to 2 decimal places.) Units Produced Fixed cost per unit 2,500 3,000 3,500 Problem: Module 5 Textbook Problem 2 Learning Objectives: 5-3 Identify and describe fixed, variable, and mixed cost behavior 5-4 Demonstrate the effects of operating leverage on profitability -58 The following variable production costs apply to goods made by Campbell Manufacturing Corporation: Item Materials Labor Variable overhead Total Cost per unit $11.00 3.50 0.25 $14.75 Required Determine the total variable production cost, assuming that Campbell makes 9,000. 19,000, or 29,000 units. Units Produced Total variable cost 9,000 19,000 29,000 The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Benson Baird Number of customers (a) 82 82 Sales revenue (a * $220) $ 18,040 $ 18,040 Variable cost (* $180) N/A (14,760) Variable cost (SO) 0 N/A Contribution margin 18.040 3,280 Fixed cost (14,260) 0 Not income 5 3,280 $ 3,280 Required a. Reconstruct Benson's income statement, assuming that it serves 164 customers when itlures 82 customers away from Baird by lowering the sales price to $129 per customer. b. Reconstruct Baird's Income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by lowering the sales price to $120 per customer Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $120 per customer a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away fro lowering the sales price to $120 per customer. b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $120 per customer. BENSON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net Income (oss) Fequada Required B> a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away fr lowering the sales price to $120 per customer. b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from lowering the sales price to $120 per customer. : Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Baird's income statement, assuming that it serves 164 customers when it Iures 82 customers away from Bensor by lowering the sales price to $120 per customer. BAIRD COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net Income (los)