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Needing help with this question. Can anyone help? Marilyn's Specialties produces high quality quilts. Labor and materials costs are particularly high, The following is an

Needing help with this question. Can anyone help?

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Marilyn's Specialties produces high quality quilts. Labor and materials costs are particularly high, The following is an income statement for last year. Sales (1.000 units) $520,000 COGS Direct materials $190,000 Direct labor 200,000 Variable overhead 91,000 Fixed overhead 40,000 ($521.000) Gross margin ($1,000) Selling and administrative expenses Variable $14,000 Fixed 20,000 ($34,000) Operating Income ($35,000] 1. What is Marilyn's break-even point in units? 2. How many quilts must Marilyn sell to earn pre-tax operating profit of $40,000? 3. Marilyn suspects that she could replace some of the seamstresses (direct labor) with machines. If she were to do that, all of the following changes are expected to occur: increased fixed manufacturing costs by $100,000 per year increased variable overhead costs by $20 per quilt . decreased direct labor by $150 per quilt . increased sales units by 25%% What will Marilyn's operating income be if she replaces the seamstresses? $

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