a) What is the breakeven point (BEP) using The Wardrobes original estimates on June 1? Please provide your answer in units.

b) If the new manager implements the June changes, how many units must The Wardrobe sell to reach its revised profit objective? Is reaching the revised profit objective feasible given the constraints outlined above? Explain why or why not.

c) What is the price that The Wardrobe should charge customers to reach its revised profit objective for June, assuming it produces at its maximum capacity? Do you think it should change its price to the one you calculated? Explain why or why not.

d) Calculate the contribution margin ratio, expressed as a percentage, for the June original estimates and for the June changes, both using the selling price provided in the case. How can The Wardrobe increase its contribution margin, without increasing price?

e) Consider the changes made by the new manager in June. Overall, do you think the changes made are in line with The Wardrobes strategy? Explain why or why not.

The Wardrobe, Inc. is a Canadian clothing retailer based in Kingston, Ontario. They specialize in durable, high-quality jackets made out of exquisite leather and tailor their products to customers who are willing to pay extra due to the company's strategic focus on producing high quality products. It is currently June 1, 2021. The company estimates that, on average, it takes three hours to manufacture one jacket. They pay their workers $40 per hour on average. Approximately 15 square feet of leather is used in the production of one jacket. They can acquire 25 square feet of leather for $300. Fixed overhead is predicted to total $700,000 for the month. The company can produce a maximum of 600 jackets in June and is expecting to earn a profit of $50,000 per month. Each jacket is sold to customers for an average price of $1,500. In June, a new manager was hired who introduced several changes to the plant. He was very focused on improving net income, but was cutting costs to do so rather than increasing sales. He expected profit to increase by $20,000 per month. Some changes the new manager made include: He slashed the budgets of a number of departments by 10-25%, sometimes at the expense of technological innovation and skill development. In total, this saved $10,000 per month in fixed overhead. He eliminated the Human Resources (HR) manager. This saved $8,000 per month in fixed overhead; however, the workers in the factory were angered by the decision and absenteeism increased. The extra overtime required increased labour costs to S60 per hour. On average, it now takes four hours to produce one jacket. He failed to maintain regularly checks of equipment. As such, two of the key pieces of equipment used in manufacturing failed. These machines had allowed The Wardrobe to be more efficient in its use of raw materials. Since the department had lost key personnel who could have fixed the equipment, the machines were expected to remain out of service for 6 months. Consequently, each jacket required 50% more leather than previously required for production