cel fr Midwest Manufacturing Statement of Income 2018 2017 2016 5,645,357 $ 5,814,718 6,163,601 Sales Cost of Goods Sold: 1,787,444 369,816 1,467,793 395,175 1 1,395,532 1 523,325 1,862,968 1,918,857 2,157,260 Variable Costs Fixed Costs Total Cost of Goods Sold 3,782,389 3,895,861 4,006,341 Gross Profit Administrative & Selling Expenses: 523,906 523,325 395,175 Variable Administrative & Selling Costs Fixed Administrative & Selling Costs 959,711 1,104,796 1,016,994 1,354,886 1,628,121 1,540,900 $ 2,427,504 S 2,267,740 S 2.465,440 Total Administrative Costs Net Income Supplemental Information 2018 2017 2016 Unit Costing Summary: 118,531 77,045 107,680 100,810 Units Sold 75,376 75,607 Direct Labor Hours Attached is the financial information needed from Midwest Manufacturing to answer the questions below. The questions below must be turned in June 10, 2019 at 11:59 PM. This assignment is required to be completed using Excel, all calculations must be reflected in your spreadsheet. 1) What is the (a) breakeven in units and (b) margin of safety in units for (i) 2016, (i) 2017, and (iii) 2018? (25 Points) A new piece of manufacturing equipment is being considered for purchase. This machine is projected to reduce total cost of goods sold by 18% (based on 2018 actual results) and have a useful life of 5 years. 2) If the machine costs $2,500,000 should it be purchased? Explain. (20 Points) The company has calculated that 40% of the variable cost of goods sold are attributable to direct materials, and that 60% of the variable cost of goods sold are associated with direct labor. 3) What is the direct materials cost per item for 2018? (10 Points) It is projected that the number of units sold for 2019 will increase by 5% from 2018. No change in inventory is scheduled for 2019