$2.$ Use the operating data presented for Alberta Gauge Company and assume that the president$$s proposed course of action had been implemented at the beginning of the second quarter.

a$.$ Calculate the net impact on income before taxes for each of the three suggestions.

b$-1.$ Calculate contribution margin for R$-$gauge.

c$-1.$ Calculate the contribution per direct$-$labor dollar for Q$-$gauge and E$-$gauge.