i need help with #1 and #2. thank you!

the first picture has the data and im not sure you need info from part 1 but i put a picture of it anyways. The section i need help with is on the third picture #1 and #2. Thank you!

Child's Play has been approeched by the government, which il seeking to buy 150,000 rattles for lis day care centers in 2022 . The proposed government contract states that the govemment would poy Child's Play a price of $4.25 per rattle. If Cilld s Pisy decidese to accept thila speclal order, they would avold pochaging costs for thls contract as woll as all varlakle selling and administrative costs. The company's capecily is lirrited to only 400,000 units. If they sccept the govemment contract, they will need to increase their capacity by renting an additionat machine. Refer to the "instructions" tab for the corrpany's estimated cost data and additional machine rental cost. Assume that Chlids Play does not adopt the proposed Marketing Plan and that the company's production and sales leval without the government contract is expectod to be 300,000 rattles for 2022 . 1. Prepare an analysis below to determine the Incrementsil net Income or net loss that Childs Play would recognize if they accept thils special ordet. Plasse be sure to clesrly identify the incremental not income or net lass that you detarmise from your anslyis. 2. Based on your above anatysis, should Childs Piay accept or reject the government contract? Childs Play Company makes a plastic rattle for toddlers. The ratte is generally marketed through exclustive retalers located in upscale shopping malts. In kate 2021, Diana Suarez, the president of the compsrry, was considering an aternative marketing plan for 2022 that was presented to her by Bil Duffy, the marketing manager. Based on sales from January through October 2021, Diana expected that 2022 sales would amount to 300,000 units. Bils allernative marketing plan is pres ented below: 2022 Marketing Plan: "At the present time, we sel the product to retalers for $8.00 per rattle. Retallers generaly charge the consumers between $9 and $9.50. If we cut our seling price to retalers to $7.50, l expect that the product will do much better. Their increased markup will give them the incentive to dispiay our product more prominenty and to promote \& more vigorously to customers. Wo should support this strategy by supplying more promotional materials to retallers, which t expect would be an herease of $4,600 in Advertising and Promotion costs. Based on the price cut and the increase in adverising and promotion, 1 expect that we will be able to boost our sales volume by 20 percent to 360,000 units in 2022 . Diana recelved cost data from the company's CFO, Don Capp. Don expects that the cost data below are also reliablo estimates for 2022 for a production volume up to 400,000 units. Beyond 400,000 units, the cornpany would have to rent additional machines (with a capacity of 100,000 units each), which would increase fxed manufacturing overhead costs by $50,000 per machine. 2021 Cost Data Manufacturing Costs for rattios (based on production volume of 300,000 units): Solling and Administrative Costs for fatties (based on sales volume of 300,000 units): 2. Determine the number of rattles the company would need to sell in 2021 in order to break-even, assumlng ne changas to selling price or costs. Please show your work and round to the nearest next whale unit. 3. Assuming the seling price and cost changes in the Marketing Plan are adopted, prepare a CVP Income Statement for 2022, assuming sales and production increase by 20% as outtined in the Marketing Plan. Child's Play has been approached by the govemment, which is seeking to buy 150,000 rattles for its day care centers in 2022 . The proposed govemment contract states that the govemment would pay Child's Play a price of $4.25 per rattle. If Child's Play decides to accept thls special order, they would avold packaging costs for thls contract as well as all variable selling and administrative costs. The corrpany's capacity is lirited to only 400,000 units. If they accept the government contract, they will need to increase their capacity by renting an additional machine. Reler to the "inatructions" tab for the corrpany's estimated cost data and additional machine rental cost. Assume that Cilds Play does not adopt the proposed Marketing Plan and that the company's production and sales level without the government contract is expected to be 300,000 rattles for 2022 . 1. Prepare an analysis below to determine the incremental net income or net loss that Chlid Play would recognize if they accept this special order. Please be sure to cleanly identify the incremental net income or net loss that you deremine from your analysis. 2. Based on yout above anulysis, should Crild s Play accept or reiect the govemment contract