High School Traditions operates a shop that makes and sells class rings for local high schools. 11k following operating information is available: What is the firm's breakeven point in rings? In sales revenue? What sales revenue is needed to yield $140,000 in before tax profits? The firm's marketing manager believes that by spending an additional $12,000 in advertising and lowering the unit selling price by $10, he can increase the number of rings sold by 25%. Current sales are 2.200 rings Should these changes be made? Refer to the sales in part B to answer the next two questions. What is the margin of safety in units? What is the operating leverage ratio? If sales increase 10%. by what percentage will profit before tax (operating profit) increase? Prepare a contribution margin (variable costing) income statement to verify your answer to E