expenses would be reduced by $6,60 per unit. However, fixed expenses would increase to a total of $534,600 each month. Pr 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 perc 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 available to make the purchase) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketir- strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the compa would pay salespersons fixed salaries 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 $443,520 net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketi strategy Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 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.) OCydical movements in the economy Reserves and surplus of the company Performance of peers in the industry Slock level maintained expenses would be reduced by $6.60 per unit. However, fixed expenses would increase to a total of $534,600 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 available 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 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 $443,520, and it 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. Required: Required 2 Required Required 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 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 $443,520; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. (Hint: figure out the new variable cost per unit by preparing the new contribution format income statement.) (Do not round intermediate calculations, Round your answer to the nearest whole dollar amount.) Show less expenses would be reduced by $6.60 per unit. However, fixed expenses would increase to a total of $534,600 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 available 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 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 $443,520, and it 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. Required: Required 2 Required Required 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 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 $443,520; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. (Hint: figure out the new variable cost per unit by preparing the new contribution format income statement.) (Do not round intermediate calculations, Round your answer to the nearest whole dollar amount.) Show less