Answer requirement 3 pls

Bailey Manufacturing sold 445,000 units of its product for $76 per unit in 2014. Variable cost per unit is $64, and total fixed costs are $1,780,000. Requirements 1 Calculate (a) contribution margin and (b) operating income. 2. Bailey's current manufacturing process is labor intensive. Kate Bauer, Bailey's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $4,450,000. The variable costs are expected to decrease to $48 per unit. Bailey expects to maintain the same sales volume and selling price next year. How would acceptance of Bauer's proposal affect your answers to (a) and (b) in requirement 1? 3. Should Bailey accept Bauer's proposal? Explain. proposal affect your answers to (a) and (D) In requirement 1? Recalculate (a) and (b) if the proposal is accepted. (a The contribution margin would be $ 12460000 under Bauer's proposal. (b) Operating income would change to $ 8010000 Requirement 3. Should Bailey accept Bauer's proposal? Explain. Operating income is expected to increase v by $ Based on operating income alone, Bailey should the proposal. reject Enter your answer in the answer box and then click Check Answer. accept