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Galaxy Corporation has the following information available: Direct Materials $19 per unit Direct Labor $24 per unit Variable Overhead $12 per unit Variable Selling and Admin $3 per unit Fixed overhead costs are $260,000 annually and fixed selling and administrative costs are $244.000 annually. The selling price is $100 per unit. A. Compute the following amounts: 1. The selling price per unit is 2. The total variable costs per unit are 2. The contribution margin per unit is 4. The total fixed costs are 5. The break-even point in units is 6. The break-even point in sales dollars is B. Galaxy is currently selling 15,000 units. Compute the following amounts: 1. The net income is 2. The margin of safety in dollars is a. The margin of safety ratio is (if you enter as a percentage rather than a decimal, be sure to include the percent sign, for example: 43 as a decimal, or 43% as a percentage--round to 2 decimal places, for example 4318 would be 43 or 43%) C. Compute the following amounts: 1. If Galaxy would like to have $172,200 of net income, how many units would have to be sold? 2. If Galaxy would like to have $172,200 of net income, but can only sell 15,000 units, by how much would selling price have to be increased? Selling price would have to be increased by (Be sure to enter the increase from the old selling price to the new selling price) D. Galaxy assumes if no changes are implemented, sales in the upcoming year will again be 15,000 units. Galaxy is considering 2 alternatives to increase net income. Alternative One: Decrease selling price per unit by $4, which would result in an increase in the current unit sales of 15%. Per unit variable costs and total fixed costs would be unchanged. Alternative Two: Decrease fixed costs by $60,000 by increasing per unit variable costs by $5. Unit selling price and unit sales would be unchanged. 1. Alternative One would (type increase or decrease) current net income by 2. Alternative Two would (type increase or decrease) current net income by 2. Alternative (type one, two, or neither) should be chosen

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