Managerial Finance Breakeven Problem The Hawk Majic Company (HMC) builds component parts utilized in manufacturing costume jewelry. The table below contains cost and revenue information for HMC. Fixed Costs Preparation of processing equipment $ 90,000 Depreciation on equipment 40,000 Depreciation on fixtures 10,000 Rent 30,000 Overhead Expenses 80,000 Total fixed costs $ 250,000 Variable Costs per Unit Preparation of orders (labor) S 50 Processing (labor) 1.20 Packaging and delivery (labor & material) 1.10 Material costs 1.40 General and administrative costs .80 Total variable costs per unit $ 5.00 Price per unit $ 10.00 a) Determine the number of units the HMC must sell in order to breakeven. b) How many units must the HMC sell in order to earn a profit before taxes of $400,000? c) Suppose HMC purchased new equipment, increasing depreciation expenses by $20,000. What would be the new breakeven number of units the HMC must sell? How has the Total Operating Cost curve changed? d) Starting with the original fixed cost, variable cost, and price given above, suppose now that the material costs per unit increase by $1.00. What would be the new breakeven number of units the HMC must sell? How has the Total Operating Cost curve changed? e) Sketch a graphical operating breakeven analysis based on the original data. Label all items on your graph. Show all your calculations