In an effort to increase sales and profits, speaker. The higher quality speaker would increase variable costs by $3 per unit but management couid eiiminate one quality inspector who is paid a saiary of $30,000 per year. The sales manager estimates that the higher quality speaker would increase annual sales by at least 20%. management is considering the use of a higher quality (GO BACK TO THE ORIGINAL INFORMATION WHEN DOING THIS PART). Required 1. Assuming the changes are made as described above, prepare a projected income statement and compute the new profit. 2. Compute the company's new break even point in both units and colfars of sales. 3. Would you recommend that the changes be madei? Question 2(36 pts) A company makes skateboards and the details are given below: Direct materials (wood, plastic, wheel assemblies) Direct labor (cutting, sanding) Sales brochures Radio and magazine advertising indirect production materials (elue, screws) $2,000 $4,000 $3,000 $4,000 $1,000 Sales commissions Factory utilities Office supplies Office administrative salaries $5,000 $3,500 $3,000 $2,000 $3,000