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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak.Kevlar $250 per kayakResin and supplies $100 per kayakFinishing kit (seat, rudder, ropes, etc.) $170 per kayakLabor $420 per kayakSelling and administrative expensesvariable $400 per kayakSelling and administrative expensesfixed $119,700 per yearManufacturing overheadfixed $240,000 per yearBill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,000.(a) Calculate variable costs per unit. Variable cost per unit $Bill Johnson, sales manager, and Diane Buswell, co (b) Determine the contribution margin per unit. Contribution margin per unit $Bill Johnson, sales manager, and Diane Buswell, co (c) Using the contribution margin per unit, determine the break-even point in units for this product line. Break-even point Bill Johnson, sales manager, and Diane Buswell, co units(d) Assume that Current Designs plans to earn $270,600 on this product line. Using the contribution margin per unit, calculate the number of units that need to be sold to achieve this goal.Number of units Bill Johnson, sales manager, and Diane Buswell, co units(e) Based on the most recent sales forecast, Current Designs plans to sell 1,000 units of this model. Using your results from part (c), calculate the margin of safety and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 25.5%.)Margin of safety $Bill Johnson, sales manager, and Diane Buswell, co Margin of safety ratio Bill Johnson, sales manager, and Diane Buswell, co%By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.(a) Calculate variable costs per unit.Variable cost per unit $Bill Johnson, sales manager, and Diane Buswell, co(b) Determine the contribution margin per unit.Contribution margin per unit $Bill Johnson, sales manager, and Diane Buswell, co(c) Using the contribution margin per unit, determine the break-even point in units for this product line.Break-even point Bill Johnson, sales manager, and Diane Buswell, co units(d) Assume that Current Designs plans to earn $270,600 on this product line. Using the contribution margin per unit, calculate the number of units that need to be sold to achieve this goal. Number of units Bill Johnson, sales manager, and Diane Buswell, co units(e) Based on the most recent sales forecast, Current Designs plans to sell 1,000 units of this model. Using your results from part (c), calculate the margin of safety and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 25.5%.)Margin of safety $Bill Johnson, sales manager, and Diane Buswell, coMargin of safety ratio Bill Johnson, sales manager, and Diane Buswell, co%