HRM732 Individual Assignment #2 (30 Marks) 15% of the overall grade for the course The year has passed and Ron has become used to being able to come

Trading Price per Share:

$12

Required:

I.        Identify all the expenses above as being either Fixed or Variable. For expenses labeled Shipping, Amortization and Electricity, explain why you chose either fixed or variable. (7 Marks)

II.       Using your cost behaviour breakdown, calculate the Contribution Margin for each unit produced. (7 Marks)

III.     What would be the number of units necessary to produce for a breakeven scenario? (5Marks)

IV.     Management has recently discovered that they are now able to lower their labour costs from 67,000 to 55,000 within the year with all other costs remaining the same. What is the Contribution Margin now? (7 Marks)

V.      Calculate the Gross Profit Margin and Net Profit Margin Ratios. (4 Marks)