Hartz Corporation is planning for next year and the current budget has the following information: Units Sold: 2,800 Selling Price: $40 per unit Variable Cost Per Unit: $20 Annual Fixed Costs: $5,000 Management is thinking about making changes in order to increase operating income. They are debating the following alternatives: 1. Reduce fixed costs by $1,000 and lower the selling price to $37. Unit sales are expected to be 3,300. 2. Reduce the selling price to $35.00. Management believes that this will increase the units sold to 3,500. Variable costs would be reduced to $18 per unit. the units sold to 3,500. Variable costs would be reduced to $18 per unit. Required Calculate the break-even point in units sold for each alternative (a total of 3) Prepare an income statement for each alternative (a total of 3) Write a brief conclusion as to what Hartz should do. Support your conclusion with amounts from your calculations. Sales Variable Costs Contribution Margin Fixed Costs Net Income Break-Even in Units Current Option 1 Option 2