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3. [17 points] Jakku, Inc. manufactures and sells two droid models: R2s and BB8s. Historically, the sales mix is three (3) R2s to five (5)

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3. [17 points] Jakku, Inc. manufactures and sells two droid models: R2s and BB8s. Historically, the sales mix is three (3) R2s to five (5) BB8s. R2s have a selling price of $1,200 per unit while BB8s are sold for $240 per unit. Variable costs are $480 for R2s and $160 for BB8s. The company's fixed costs are $1,000,000 per year. The company tax rate is 30%. Required: a. [6 points] Compute the volume of sales in units of each product needed to reach BEP. Use Form 3-A for your calculations. R2s BB8s BEP Units b. [ 4 points] Compute the volume of sales in units of each product needed to reach a net income of $1,200,000. Use Form 3-B for your calculations. c. [ 3 points] Calculate the margin of safety in dollars assuming your answers in a. and b. are correct. Use Form 3-C to for your calculations. Dollars Margin of Safety d. [3 points] Calculate the operating leverage for the sales volume plan you computed in b. Use Form 3-D to for your calculations. Operating Leverage: e. [1 point] If the company wanted to lower the total number of units produced to reach the break-even point, which product should they increase production of? Briefly explain

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