Gary's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $670,000 and a contribution margin of 75% of revenues. Gary feels like he's in a giant squeeze play. The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Gary's contribution margin has shrunk to 45% of revenues. The company's monthly operating income, prior to these pressures, was $87,500 Read the requirements Requirement 1. To maintain this same level of profit, what sales volume (in sales revenue) must Gary now achieve? (Round your answer up to the nearest whole dollar) Gary must now achieve sales of to maintain the same level of profit Requirement 2. If monthly sales are $1,010,000, by how much will he need to cut fixed costs to maintain his prior profit level of $87,500 per month? Fixed expenses can only be will have to save at least in order to maintain the prior profit level of $87,500 per month. Therefore, Gary per month in fixed costs by moving operations overseas if he plans to maintain his prior profit level.