(10 percent) Peta Company produces power tools. It is trying to determine which alternative it should implement for the coming year since currently, it produces only one model, a Regular model. Alternative 1: If it continues to produce and sell only one model, Regular, its income statements of the current year and the estimate for next year are as follows: Current Year Next Year Projection 75,000 units 85,000 units Sales.. $3,000,000 $3,400,000 Less: cost of goods sold.. 1.650.000 1.790.000 Gross margin... 1,350,000 1,610,000 Less: selling & administrative expenses 1.000.000 1.100.000 Operating income..... $ 350.000 $ 510.000 Alternative 2: If the company produces two models (Regular and Mini) in the coming year, the sales units of the Regular would be the same as the current year at 75,000 units, but Mini would be for 30,000 units with revenue, variable and fixed expenses of the Mini as: Selling price per unit... Variable expenses per unit.. $60 $30 Fixed expenses increase by an additional..... $300,625 Required: Solve each alternative independently. For your answers, do not input "$" sign and "," sign in numbers. Answer the following questions: (Show your final answer to two decimal places, if necessary.) Questions: 1. For Alternative 1, what is the variable cost per unit Basic model using the high-low method? Answer: 2. For Alternative 1, what is the total fixed cost of the Basic model using the high-low method? 3. If only the Basic model will be made (alternative 1), what would be the breakeven in dollar sales? 4. If only the Basic model will be made (alternative 1), what would be the margin of safety in monetary value for next year? 5. If only the Basic model will be made (alternative 1), what would be the degree of operating leverage of next year? 6. If the company will produce two models (alternative 2) in the coming year, what is the expected operating income for the proposed sales mix? 7. If the company will produce two models (alternative 2) in the coming year, what is the breakeven sales dollar for the proposed sales mix? 8. If the company will produce two models (alternative 2) in the coming year, what is the margin of safety in dollar value for the proposed sales mix? 9. If the company will produce two models (alternative 2) in the coming year, what is the degree of operating leverage of the proposed sales mix? 10. If in years ahead, the sales demand of the company's products is uncertain, which of the two alternatives is better to achieve a slightly more stable operating income? Choose one of the following