Needed ASAP

Aberta Gauge Company, Ltd., a small manufacturing company in Calgary, Alberta, manufactures three types of electrical gauges used in a variety of machinery. For many years the company has been profitable and has operated at capacity. However, in the last two. years, prices on all gauges were reduced and selling expenses increased to meet competition and keep the plant operating at capacity. Second-quarter results for the current year, which follow, typify recent experience. Alice Carlo, the company's president, is concerned about the results of the pricing, selling, and production prices. After teviewing the second quarter results, she asked her management staff to consider the following three suggestions: - Discontinue the R-gauge line immediately. R-gauges would not be returned to the product line uniess the problems with the gauge can be identified and resolved. - Increase quarterly saies promotion by $165,000 on the Q-gauge product line in otder to increase sales volume by 0 percent. - Cut production on the Egauge line by 0 percent, and cut the traceable advertising and promotion for this line to $46,000 each quarter. Jason Sperry, the controller, suggested a more careful study of the financiat relationships to determine the possible effects on the company's operating resuits of the president's proposed course of action. The president agreed and assigned JaAnn Brower, the assistant controller, to prepare an analysis. Brower has cathered the following information. company s operating resuits or the presioent s proposed course of action. I ne president agreed and assigned JoAnn Brower, the assistant controller to prepare an analysis. Brower has gathered the following information. - All three gauges are manufactured with common equipment and faclities. - The selling and administrative expense is allocated to the three gauge lines based on average saies volume over the past three years - Special selling expenses (primarlly advertising. promotion, and shipping) are incurred for each gauge as follows: - The unit manufacturing costs for the three products are as follows: - The unit sales prices for the three products are as follows: - The company is manufacturing at capacity and is selling all the gauges it produces. Required: 2. Use the operating data presented for Alberta Gauge Company and assume that the president's proposed course of action had been implemented at the beginning of the second quarter. a. Calculate the net impact on income before taxes for each of the three suggestions. b-1. Calculate contribution margin for R-gauge. b-2. Was the president correct in proposing that the R-gauge line be eliminated? e-1. Calculate the contribution per direct-labor dollar for Q-gauge and E-gauge. c-2. Was the president correct in promoting the Q-gauge line rather than the E-gauge line? Complete this question by entering your answers in the tabs below. Calculate the net impact on income before taxes for each of the thice suggestions. - The company is manufacturing at capacity and is selling all the gauges it produces. Required: 2. Use the operating data presented for Alberta Gauge Company and assume that the president's proposed course of action had been implemented at the beginning of the second quarter. a. Calculate the net impact on income before taxes for each of the three suggestions: b-1. Calculate contribution margin for R-gauge. b-2. Was the president correct in proposing that the R-gauge line be eliminated? c-1. Calculate the contribution per directilabor dollar for Q-gauge and E-gauge. c.2. Was the president correct in promoting the Q-gauge line rather than the E-gauge line? Complete this question by entering your answers in the tabs below. Calculate contribution margin for R-gouge. Complete this question by entering your answers in the tabs below. Was the president correct in proposing that the R-gauge line be eliminated? Calculate the contribution per direct-labor dollar for Q-gauge and E-gauge. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Was the president correct in promoting the Q-gauge line rather than the E-gauge line