The background information is provided in the image attached. Solve the following:
g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the
break-even point:
(i) Sales volume increases
(ii) Total fixed cost decreases
(iii) Selling price per unit increases
(iv) Variable cost per unit increases
Extracted text: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) Production Costs: Direct Materials Direct Labour 4,000 6,000 $60,000 $90,000 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour Depreciation 40,000 50,000 20,000 20,000 Selling & Administrative Expenses: Sales Salaries . 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15.000 20.000 Total $365.000 $477.500