Perrry Corporation produces a molded plastic casing, LX201, for desktop computers. Summary data from its 2012 income statement are as follows: (Click the icon to view the summary data.) Karen Vang, Perrry's president, is very concerned about Perrry Corporation's poor profitability. She asks Julian Hewitt, production manager, and Freddie Madden, controller, to see if there are ways to reduce costs. After 2 weeks, Julian returns with a proposal to reduce variable costs to 60% of revenues by reducing the costs Perrry currently incurs for safe disposal of wasted plastic. Freddie and Julian have the following conversation: (Click the icon to view the conversation.) Read the requirements Requirement 1. Calculate Perrry Corporation's breakeven revenues for 2012 Begin by determining the formula to calculate Perrry Corporation's 2012 contribution margin percentage. Contribution margin % - X Data Table Requirements Revenues $ 4,000,000 Variable costs 1. Calculate Perrry Corporation's breakeven revenues for 2012 2. Calculate Perrry Corporation's breakeven revenues if variable costs are 60% of revenues. 3. Calculate Perrry Corporation's operating income for 2012 if variable costs had been 60% of revenues. 4. Given Julian Hewitt's comments, what should Freddie Madden do? 2,600,000 1,575,000 Fixed costs $ Operating income (175,000) Print Done Print Done