2. Award 10.00 points Morton Company's statements of profit and loss for last month is given below. Sales (25.000 units at (30) Less variable expenses Contribution mang Profit 750,000 525,000 225,000 150,000 75.000 The industry in which Marton Company operates is quite sensitive to cyclical movements in the economy Thus profits vary considerably from year to year according to general economic conditors. The company has a surge amount of unused capacity and is studying ways of improving pr Required: 1.New equipment has come onto the market that would allow Morton Company to automate a portion of its cperations Variable coals would be reduced by 9 per unit. However, fleed costs would increase to at of 375.000 each month. Prepare two contribution-type statements of profit and loss, one showing present operations and one showing how operations would appear if the new equipment as purchased (Do not show percentages for the fixed costs) Amount Present Per Unit Proposed Amount Per Unit Sales 750.000 30 100 750.000 30 100 Less variable expenses 525,000 Contribution margin 225.000 Lass and exper 150,000 75.000 2.Refer to the statements of proft and loss in Requirement above. For both present operations and the proposed new operations, compute the following (Round your percentage and leverage answers to 2 decimal places) (4) Degree of operating leverage b) Break-even point in pounds (6) Margin of safely in pounds Margin of safety in percentages Proposed 3.Refer again to the data in Requirement Tabove. As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (You may assume that ample funds are available to make the purchase) The reduction in operational costs of the new equipment OThe improvement of afficiency of the new equipment OThe cyclical movements in the economy. ONone of the above. pn.com/apitalactityC15ZWQLC 9/2/22810PM Assignment Pret View 4. to the orginal data. Rather than purchase new equipment, the president is thinking about changing the company's marketing method. Under the new method, sales would increase by 20% each month and profit would increase by ace third Fixed costs could be slashed to only 80,000 per month. Compute the break-even point for the company after the change in marketing method (De not round intermed calculations. Round your answer to the nearest whole number The new break-even po 12