Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below: Last year This year Units sold 50,000 70,000 Sales $800,000 $1,120,000 Cost of goods sold 550,000 710,000 Gross margin 250,000 410,000 Selling and administrative expense 150,000 190,000 Net operating income $100,000 $ 220,000 The company has no beginning or ending inventories. Required: a. Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.) b. Compute the company's contribution margin for this year.

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk