7. In an effort to increase sales and profits, management is considering using a higher-quality microprocessor in the router. The higher-quality microprocessor would increase variable costs by $8 per unit, but management could eliminate one quality inspector, who is paid a salary of $40,000 per year. The sales manager estimates that the higher-quality micropro- cessor would increase annual sales by at least 10%. Assuming that changes are made as described above, prepare a projected income statement for next year. Show data on a total, per unit, and percentage basis. b. Compute the company's new break-even point in both units and dollars of sales. Use the formula method. Would you recommend that the changes be made? Why or why not? a. c. 7. In an effort to increase sales and profits, management is considering using a higher-quality microprocessor in the router. The higher-quality microprocessor would increase variable costs by $8 per unit, but management could eliminate one quality inspector, who is paid a salary of $40,000 per year. The sales manager estimates that the higher-quality micropro- cessor would increase annual sales by at least 10%. Assuming that changes are made as described above, prepare a projected income statement for next year. Show data on a total, per unit, and percentage basis. b. Compute the company's new break-even point in both units and dollars of sales. Use the formula method. Would you recommend that the changes be made? Why or why not? a. c