(6 marks) Pothier Company produces a single product, it sold 25,000 units tast year with the following resulta: Mint: Place the following income statement in the proper contributhan - In an attempt to improve its product in the coming year, Pothier is considering replacing a $2.50 component in its product with a new and better part that costs $4.50 per unit. This new component will increase variable cost per unit. A new machine will also be needed to increase plant capacity. The machine would cost $20,000, with a useful life of 5 years and no salvage value. The company uses straight-line depreciation on all plant assets for both financial statements and tax purposes, therefore this would create an extra $4,000 depreciation/amortization expense per year. Required: 1. (4 Marks) If Pothier Company holds the sales price constant and makes the suggested changes, how many units of the product must be sold in the coming year to break even? 2. (2 Marks) What new selling price would need to be calculated if Pothier wanted to keep the 5ame original contribution margin ratio of 40% subsequent to making the changes in variable and fixed cost? In other words what selling price would keep the contribution margin at 40% once the changes are made