Currently, J.C. Products (JCP) only sells its products to other firms in the wholesale market. However, one of JC's employees recently submitted a proposal that recommends the company expand its operations to also sell its products in retail establishments. To determine the feasibility of the idea, you must perform a breakeven analysis. The fixed costs associated with producing and selling the products to retail stores would be $300,000, the selling price per unit is expected to be $80, and the variable cost ratio is expected to be 75 percent of the selling price. 1. What is the operating breakeven point both in dollars and in number of units for the employee's proposal? 2. Suppose JCP expects to produce and sell 25,000 units of its product this year. 1. Compute JCP's net operating income at 25,000 units of sales. 2. What is the degree of operating leverage (DOL) at his level of sales? What would be the percent increase in operating profits if JCP's sales actually turn out to be 10 percent higher than expected? 3. Currently, JCP pays $150,000 in interest. Because the company will not increase its debt if the expansion is implemented, its interest payments will remain the same next year as they were last year. Compute JCP's net income assuming its marginal tax rate is 30 percent. 4. What would be JCP's degree of financial leverage (DFL) and its degree of total leverage (DTL) if it produces and sells 25,000 units? If the actual sales turn out to be 10 percent greater than expected, as a percent, how much greater would the earnings per share be? 3. Explain how breakeven analysis and leverage analysis can be used for planning the implementation of this proposal. Required: All your computations must be completed using a spreadsheet. You must set up the appropriate equations/relationships in the spreadsheet to complete the computations. You should submit only one file-the spreadsheet that contains your computations. Include the required explanations in the spreadsheet. Label all your work; otherwise, you will not receive full credit