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answer 5 and 6 only Required information The following information applies to the questions displayed below) Horton Manufacturing Inc. (HMI) is suffering from the effects

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Required information The following information applies to the questions displayed below) Horton Manufacturing Inc. (HMI) is suffering from the effects of increased local and global competition for a lawn mower that is sold in discount stores throughout the United States. The following table shows then operations for 2019 Sales (14,500 units @ $84) Variable costs (14,500 563) Contribution margin Fixed costs Operating profit (loss) $ 1,218,000 913,500 $ 304,500 338, 100 $ (33,680) Required: 1. Compute HMI's breakeven point in both units and dollars. Also, compute the contribution margin ratio. 2. What would be the required sales, in units and in dollars, to generate a pretax profit of $30,000? 3. Assume an income tax rate of 40% What would be the required sales volume, in both units and dollars, to gener profit of $30,000? 4. Prepare a contribution income statement as a check for your calculations in requirement 3. 5. The manager believes that a $60,000 increase in advertising would result in approximately a $200,000 increase the manager is right, what will be the effect on the company's operating profit or loss? 6 Refer to the original data. The vice president in charge of sales feels that a 10% reduction in price in combination increase in advertising will cause unit sales to increases by 25%. What effect would this strategy have on operating Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Required 5 Required 6 The manager believes that a 560,000 increase in advertising would result in approximately a $200,000 Increase in annual sales. If the manager is right, what will be the effect on the company's operating profit or loss? decrease by $ 10.000

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