Manufacturing sold 400,000 units of its product for $60 per unit in 2017. Variable cost per unit is $ 48, and total fixed costs are.

Requirement 1. Calculate (a) contribution margin and (b) operating income. (a) Determine the formula used to calculate the contribution margin. Total sales - Total variable costs = Contribution margin. The contribution margin is $ 4,800,000.

b) Determine the formula used to calculate the operating income. Contribution margin - Total fixed costs = Operating Income Operating income is $ 3,200,000.

.	Calculate (a) contribution margin and (b) operating income.
2.	Wilsar's current manufacturing process is labor-intensive. Kate Schmidt,Wilsar's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $4,000,000. The variable costs are expected to decrease to $32 per unit. Wilsar expects to maintain the same sales volume and selling price next year. How would acceptance of Schmidt's proposal affect your answers to (a) and (b) in requirement 1?
3	Should Wilsar accept Schmidt's proposal? Explain.

Requirement 2. 's current manufacturing process is labor-intensive. Kate , 's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to. The variable costs are expected to decrease per unit. expects to maintain the same sales volume and selling price next year. How would acceptance of 's proposal affect your answers to (a) and (b) in requirement 1? Recalculate (a) and (b) if the proposal is accepted. (a) The contribution margin would be $ under Schmidt's proposal.

Could you please help with requirement 2? thank you,