The following forecast variable costing income statement was prepared for Electric Machines Ltd. for

The following forecast variable costing income statement was prepared for Electric Machines Ltd. for the year ending April 2013: Sales…………… $100,000,000 Variable costs……….. 45,000,000 Contribution margin…….. 55,000,000 Fixed costs……….. 25,000,000 Net income……….. 30,000,000 The general manager is interested in buying a leisure boat with a tag price of $30,000 with the bonus he will collect in May 2013 (based on the net income of the year ending in April 2013). To estimate his bonus, he developed a probabilistic model for a range of possible outcomes for these financial parameters. He collected the following information from various managers within the firm: i. The likelihood that the worst-case scenario for sales would occur (drop of 25%) was set at 15%. The likelihood that the best-case scenario for sales would occur (an increase of 25%) was set at 10%. Finally, the likelihood that the most likely scenario would occur (sales of $100,000,000) was set at 75%. ii. The likelihood that the worst-case scenario for fixed costs would occur (increase of 20%) was set at 20%. The likelihood that the best-case scenario for fixed costs would occur (a decrease of 20%) was set at 20%. Finally, the likelihood that the most likely scenario would occur (fixed costs of $25,000,000) was set at 60%. iii.Variable costs will always run at 45% of sales. The general manager’s compensation is composed of a flat salary of $75,000 plus 1% of net inco