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Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below: Total Per Unit Percent of Sales Sales (20,000 units) $1,200,000 $60 100% Variable expenses 900,000 45 ? % Contribution margin 300,000 $ 15 ? % Fixed expenses 240,000 Net operating income $ 60,000 Management is anxious to increase the company's profit and has asked for an analysis of a number of items. Use the data above to answer question 6 below. 6. In an effort to increase sales and profits, management is considering the use of a higher-quality speaker. The higher-quality speaker would increase variable costs by $3 per unit, but management could eliminate one quality inspector who is paid a salary of $30,000 per year. The sales manager estimates that the higher-quality speaker would increase annual sales by at least 20%(6 pts) a. Assuming that changes are made as described above, prepare a projected contribution format income statement for next year. Show data on a total, per unit, and percentage basis. b. Compute the company's new break-even point in both unit sales and dollar sales. Use the formula method. C. Would you recommend that the changes be made? 7. Lewis Inc. has a margin of safety of $90,000. If Lewis's sales drop by $70,000 will Lewis still have a positive net income. Use an example to explain your answer and include the definition of what margin of safety is? (2pts) 8. Hartford Shoe Inc. is a single product firm. The company predicts that a price increase will not cause unit sales to decrease. Based upon this assumption What would happen to the breakeven point and the contribution margin ratio? Explain your answer by creating a contribution margin income statement ( 2 pts)