2

Required information [The following information applies to the questions displayed below.] Horton Manufacturing Inc. (HMI) is suffering from the effects of increased local and global competition for its main product, a lawn mower that is sold in discount stores throughout the United States. The following table shows the results of HMI's operations for 2019: Sales (12,500 units e $84) Variable costs (12,500 e $63) Contribution margin Fixed costs S 1,050,000 787,500 S 262, 500 296,100 S (33,600) Operating profit (loss)