can someone explain this, step by step with formulas and explanations on how to solve please.
dont forget to show the formulas used and a thorough
Moton Comparys contrioution format income statement for last month is given bew: The heratiy in whach Morton Company operates is qube sensnive to gycical movenents in the economy. Thus, profits vary congiceraby fom year to year according to general economic cond toris the company nas a large amount of unused capacty and 5 sfuoying ways of improving protits. Required: 5. New equipment has come onto the market that would aliow Morton Company to automate a portion of its operations. variabie expenses wouid be reduced by 5750 per unit. However. fixed expenses would focrease to a total of 5621,000 each montn. Prepare IWo contnbition format income statements, one showng present operations and ane thowing how operations would appeat if the new equpment is purchased. 2 Refer to the income stateatents in it). For the present operatong and the proposis oew operations, compute (a) the degree of operating leveroge, (b) the break-even point in doliar bales, and (c) the margros ostety in dofars and the margin of sately percentoge. 3. Heter ogan to the data in (7. As a manager, what factor woulo be pararnount in your motion in deciding whether to purchase the new cquipmerir (A5sume that enough funds are avallabie to make the purchase) 4. Perer to the onginal data. Rather than purchase new equipene the markesis mengger argues that the companys makesine airhegy should be changed. Aathec than pay sacs commis sions whicn are cunesty Aaclucied in vanabie expenses, the company woud pay calespersons fixed satanes and would invest heavily in agvetisng. the mianelno manager clave this new approach would ctatatery corpplete this question by entering your answers in that taks below. Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $7.50 per unit. However, fixed expenses would increase to a total of $621,000 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are avallable to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavlly in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $440,450; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. Complete this assiestion by entering your answers in the tabs below. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. (Do not round intermediate calculations, Round your percentage answers to 2 decimal places (i.e. 1234 ihould be entered as 12.34).) Requlred: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variabl expenses would be reduced by $7.50 per unit. However, fixed expenses would increase to a total of $621,000 each month. Pre two contribution format income statements, one showing present operations and one showing how operations would appear if new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety perci 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase th equipment? (Assume that enough funds are avallable to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketin strategy should be changed. Rather than pay sales commissions, which are currently included in varlable expenses, the compa would pay salespersons fixed salarles and would invest heavily in advertising. The marketing manager claims this new approac increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $440,450 net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketin strategy. Complete this question by entering your answers in the tabs below. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.) Requlred: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variabl expenses would be reduced by $7.50 per unit. However, fixed expenses would increase to a total of $621,000 each month. Pre two contribution format income statements, one showing present operations and one showing how operations would appear if new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety perci 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase th equipment? (Assume that enough funds are avallable to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketin strategy should be changed. Rather than pay sales commissions, which are currently included in varlable expenses, the compa would pay salespersons fixed salarles and would invest heavily in advertising. The marketing manager claims this new approac increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $440,450 net operating income would increase by 20%. Compute the company's break-even point in doilar sales under the new marketin strategy. Complete this question by entering your answers in the tabs below. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are avaliable to make the purchase.) Requlred: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $7.50 per unit. However, fixed expenses would increase to a total of $621.000 each month Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are avallable to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in vanable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $440,450; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. Complete this question by entering your answers in the tabs below. Refer to the original data. Rather than purchaseliew equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay, sales, commissions, which are currently induded in variable expenses, the company would pay salespersons fixed salacies, and wouldinvest heavily in advertising. The marketing manager daims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $440,450; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. (Do notround intermediate calculations. Round your answer to the nearest Whole dollar amount.)
