I need help with parts 5-9, please show your work where you can, thank you!

Baxter Company produces and sells one product as it begins its operations. The company put together a budget for its first year of operations using the following: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 23 15 5 3 $ $ 500,000 68,000 During its first year of operations Baxter expects to produce 25,000 units and sell 20,000 units. The budgeted selling price is $75 per unit. Required: (answer each question independently by referring to the original data): 1. Using the budget estimates above, create an absorption costing income statement for the first year of operations. 2. Another option Baxter is considering is to use a higher quality raw material. The cost of direct materials will increase by $1 per unit but Baxter estimates that the higher quality raw material will increase sales by 1,000 units. Create a revised absorption costing income statement if it uses the higher quality raw material, increases sales, and continues to produce 25,000 units. 3. A third option has Baxter raising its selling price by $1.00 per unit but expecting a sales decrease of 1,500 units to 18,500 units. Create the absorption costing income statement if Baxter raises its price by $1.00, has a sales decrease of 1,500 units, and continues to produce 25,000 units? 4. Using the budget estimates above, create a variable costing income statement for the first year of operations. 5. Another option Baxter is considering is to use a higher quality raw material. The cost of direct materials will increase by $1 per unit but Baxter estimates that the higher quality raw material will increase sales by 1,000 units. Create a revised variable costing income statement if it uses the higher quality raw material, increases sales, and continues to produce 25,000 units. 6. A third option has Baxter raising its selling price by $1.00 per unit but expecting a sales decrease of 1,500 units to 18,500 units. Create the variable costing income statement if Baxter raises its price by $1.00, has a sales decrease 1,500 units, and continues to produce 25,000 units? 7. What is Baxter's break-even point in unit sales? What is its break-even point in dollar sales? 8. What is the company's projected margin of safety in its first year of operations? 9. Explain why the net income calculated in 1 differs from the net income calculated in 4. Prove this difference using numbers. 1 Absorption Income Statement Sales $ 1,500,000 COGS $ 1,260,000 Gross Margin $ 240,000 Variable selling and admin expenses $ 60,000 Fixed selling and admin expenses $ 68,000 Net Income $ 112,000 2 Absorption Income Statement Sales $ 1,575,000 COGS $ 1,344,000 Gross Margin $ 231,000 Variable selling and admin expenses $ 63,000 Fixed selling and admin expenses $ 68,000 Net Income $ 100,000 3 Absorption Income Statement Sales $ 1,406,000 COGS $ 1,165,500 Gross margin $ 240,500 Variable selling and admin epxenses $ 55,500 Fixed selling and admin expenses $ 68,000 Net Income $ 117,000 4 Variable costing income statement Sales $ 1,500,000 Variable costing of goods sold $ 860,000 Variable selling and admin expenses $ 180,000 Contribution margin $ 580,000 Fixed manufacturing overhead $ 500,000 Fixed selling and admin expenses $ 68,000 Net Income $ 12,000 ulu lu