e) Hanna's income statement is as follows Sales (10,00O units) Less variable costs Contribution margin Less fixed costs Net income $117.o0O $49.00O - 36 000 S 13.000 What is the break-even point in units and in sales dollars? (Points 1.0) g) Using the data from e), create a variable cost graph for Hanna, at volumes of 5,000 10,000 and 15,000 units? (Points 1.0) 7. Return on investment (25.0 Points) a) Boulder Milling is evaluating a proposal to invest in a new piece of equipment costing $160,000 (salvage value $10.000) with the following annual cash flows over th equipment's 4-year useful life. There is an initial working capital payment of $50,000 required for this equipment. Cash revenues Cash expenses $120,000 (64,000) 20.000) Income provided from equipment Cost of capital 12 percent 8% 10% 12% ear 2 0.857 0.826 0.7 Year 3 0.794 0.751 0.712 Calculate the net present value and internal rate of retum of the investment (Points 10.0)? Using the answer from a). is your recommendation to proceed with the project? Why or why not. (Points 2.5)? not (Points 2.6? your recommendation to b) If prices rise and Boulder's initial investment increases to $175,000, calculate the net present value and internal rate of return. Should they proceed with the investment? Why or why not (Points 2.0)