Ask an expertOzark Metal Company makes a single product that sells for $$45\mathrm{.}5$ per unit. Variable costs are $$29\mathrm{.}1$ per unit, and fixed costs total

$$65,355$ per month.

Required:

a$.$ Calculate the number of units that must be sold each month for the firm to break even.

b$.$ Assume current sales are $$414,000.$ Calculate the margin of safety and the margin of safety ratio.

c$.$ Calculate operating income if $5,300$ units are sold in a month.

d$.$ Calculate operating income if the selling price is raised to $$48\mathrm{.}5$ per unit, advertising expenditures are increased by $$10,000$ per

month, and monthly unit sales volume becomes $6,000$ units.

e$.$ Assume that the firm adds another product to its product line and that the new product sells for $$22$ per unit, has variable costs of

$$16$ per unit, and causes fixed expenses in total to increase to $$87,000$ per month. Calculate the firm's operating income if $5,300$

units of the original product and $4,200$ units of the new product are sold each month. For the original product, use the selling price

and variable cost data given in the problem statement.

f$.$ Calculate the firm's operating income if $3,200$ units of the original product and $6,300$ units of the new product are sold each month.

g$.$ Why operating income is different in parts $e$ and $f,$ even though sales totaled $9,500$ units in each case.

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Calculate operating income if $5,300$ units are sold in a month.

Note: Do not round intermediate calculations.