Key Manufacturing Inc. produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales $540,000 Variable expenses 360,000 180,000 Contribution margin 120,000 Fixed expenses $60,000 Net income monu he during The company produced and sold 120,000 kilograms of product There were no beginning or ending inventories Required: a. Given the present situation, compute 1) The break-even sales in kilograms. (3 marks) 2) The break-even sales in dollars. (3 marks) 3) The sales in kilograms that would be required to produce net income of $90,000. (3 marks) 4) The margin of safety in dollars. (3 marks) b. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Key Manufacturing has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease. 1) Should the company choose the lease or the royalty plan? (1 mark) 2) Under the royalty plan compute break-even point in kilograms. Round up your answer to the nearest whole number. (4 marks) 3) Under the royalty plan compute break-even point in dollars. Round your answers to the nearest whole number. Do not round your intermediate calculations. (4 marks) 4) Under the royalty plan determine the sales in kilograms that would be required to produce net income of $90,000. Round your answers to the nearest whole number. Do not round your intermediate calculations. 4 marks)