Option #1: Analyzing Cost Behavior Blue Company sold 30,000 units of its only product and incurred a $85,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 25% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $175,000. The maximum output capacity of the company is 55,000 units per year. Blue Company Contribution Margin Income Statement For Year Ending December 31, 2019 $900,000 Sales $680,000 Variable Contribution Margin $220,000 $305,000 Fixed Cost $(85,000) Net Loss 1. Compute the break-even point in dollar sales for year 2019. (Round your answers to 2 decimal places.) 2. Compute the predicted break-even point in dollar sales for year 2020 assuming the machine is installed and there is no change in the unit seling price. (Round your answers to 2 decimal places.) 3. You are the management accountant for the organization and must present your analysis of the calculations above to upper management in a PowerPoint presentation. B E G Lastname, firstname Module 3: Critical Thinking Option 1 1 Total Sales Ratio of Sales Unit Cost Sales Variable Contribution Margin Fixed Cost Net income (Loss) Total Fixed Cost Contribution Margin Ratio Breakeven in Dollars Ratio of sales New Statement Unit Cost Total Sales 2 Sales Variable Contribution Margin Fixed Cost Net Income (Loss) Total Fixed Cost Contribution Margin Ratio Breakeven in Dollars 3 Please use PowerPoint to answer stion #3