CA AE-2-5-38 Adele AubC: About AaB de products, however, each product is manufactured factory and has separate financial statements. One of the products is a soft drink vending machine that permits atomer to obtain multiple variations of the desired soft drink in one pok. The vending machines are typically sold to restaurants. The sales price of the vending machine is $4,500 each. Cost information is as follows 1,700 1,300,000 P 10% of sales price Annual Fed SGBA csts Management's profit goal for the coming year is operating income of $1,000,000. a. What is the number of units needed to achieve breakeven? b Budgeted sales for the coming year are $6.75 million. What is the margin of safety 500,000 What is the number of units needed to achieve the target operating income? Are they expected to achieve their targeted operating income based on budgeted sales? d. The company currently only operates in the Midwest. It is considering expanding to the Southwest. As part of this push, Zippo will incur increased marketing costs of $300,000 and reduce the sales price to $4,000. Unfortunately, they will also need to provide the price conceision to its existing customers. Overall, management expects that sales will double to 1,000 units per year. What is the impact of the new strategy on operating income? Should the company adopt the new strategy? Why or why not? Aas Selec