I need some help

PROBLEM 3 (33 points) WTechnology is a company that purchases a device called the Mad, from a supplier and then sells the devices to retail customers. If the company makes no changes in its operations, the company expects the following for the coming year. # of units sold 3 0,000 Price $300 per unit Cost of merchandise $100 per unit Rent and Salaries for the year $1,300,000 The company is holding a meeting to discuss ways to increase its prot that is the company s goal. At that meeting, Maria Garcia, the marketing manager, says \"If we make the changes I suggest, I think we can attract more customers and increase our share of the market. Currently, our customers pay for shipping. Market research says customers hate shipping charges, so rather than having customers pay it, we should pay it Shipping would cost us $3 per unit. Market research also shows that our prices are not competitive. So, we should lower our price to $270. If we take these actions, I estimate we will increase the number of units sold to 32,000." a. 0n the spreadsheet provided on the next page labeled \"For Problem 3a", prepare the contribution margin income statements to analyze each of the 2 possibilities for the coming year, namely i. Wmakes no changes ii. Wadopts Garcia's proposal Answer the following questions on the separate answer sheet two pages from now page labeled \"For Problem 3b, c, d, e\": b. Mr. Big, the CEO of the company says to Maria "Clearly your suggestion is a good one. Based on your estimates, we will see an additional 2,000 units. Let' do it!" How would you answer Mr. Big? c. Assume Maria's suggestions are NOT implemented. What is the breakeven point for W (Can be in $ or in units your choice.) Show all work. d. Calculate 53m; margin of safety. You can measure it in units or dollars or as a % of sales (your choice, but you only need to compute one of those). In making your margin of safety computation, assume Maria's suggestions are NOT implemented and that the company sells the 30,000 units. Show all work. e. Explain briey what margin of safety tells the company what is the meaning of the number you computed? For Problem 3a: Contribution Show your work for Make No Show your work Garcia's Margin Income kaes Changes for Garcia's Proposal Statement No Changes Results Proposal Results Contribution Margin --- Operating Income \fPROBLEM 4 {16 points] The Height of Fashion Corporation evaluates the performance of the divisions of the company based on ROI and bonuses are based on divisional ROI. A divisional income statement for the Men's Wear Division for the past year is given below. Sales $2 5,000,000 Cost of Goods Sold $10,000,000 Operating Expenses 93 4,000,000 Invested Assets $5 0,000,000 a. Generate Height of Fashion Corporation Men's Wear Division's gross prot income statement. {6 points} Height of Fashion: Men's Wear Division Income Statement For the year ended December 3 1, 20Y6 Income from Operations b. Based on your results in port a above, compute the ROI for the Men's Wear division for the past year. Show all work. [6 points] c. Height of Fashion also has a Women's Wear Division. Its ROI for the past year was 18%. The company is considering expanding one of its divisions by investing additional assets into that division. The company will only invest additional assets in one of the divisions, not both. In which division should it invest? Why? Be sure your answer convinces me that you understand the meaning of ROI. [4 points]