Perry Corporation produces a molded plastic casing, M&M101, for many cell phones currently on the market. Summary data from its 2017 income statement follows. Gilda Cooke, Perry's president, is very concerned about Perry Corporation's poor profitability. (Click the icon to view the summary data.) (Click the icon to view the additional information.) Read the requirements Requirement 1. Calculate Perry Corporation's breakeven revenues for 2017. Begin by determining the formula to calculate Perry Corporation's 2017 contribution margin percentage. Contribution margin % Perry Corporation's 2017 contribution margin percentage is %. Now determine the formula to calculate Perry Corporation's breakeven revenues for 2017 = Breakeven revenues Perry Corporation's breakeven revenues amount for 2017 is $ Requirement 2. Calculate Perry Corporation's breakeven revenues if variable costs are 60% of revenues. Perry Corporation's breakeven revenues will be $ if variable costs are 60% of revenues. Requirement 3. Calculate Perry Corporation's operating income for 2017 if variable costs had been 60% of revenues. Revenues Variable costs Fixed costs Operating income/(loss) Requirement 4. Given Daryl Holcomb's comments, what should Kirk Hyde do? O A. Following Daryl Holcomb's recommendation would be unethical but, should be done since it might keep the company from having to shut down. O B. Following Daryl Holcomb's recommendation would be ethical since it i the best interest of the company and its employees. O C. Following Daryl Holcomb's recommendation would be unethical. Estimates of environmental costs and liabilities should be included in the analysis. If Daryl still insists on modifying the numbers and reporting lower environmental costs, Kirk should raise the matter with one of Daryl's superiors. OD. Following Daryl Holcomb's recommendation would be ethical. Estimates of environmental costs and liabilities should not be included in the analysis since the company would not be violating any laws. - X Data Table $ Revenues Variable costs Fixed costs 4,200,000 2,730,000 1,610,000 $ (140,000) Operating income Print Done i More Info - X She asks Daryl Holcomb, production manager, and Kirk Hyde, controller, to see if there are ways to reduce costs. After 2 weeks, Daryl returns with a proposal to reduce variable costs to 60% of revenues by reducing the costs Perry currently incurs for safe disposal of wasted plastic. Kirk and Daryl have the following conversation: Kirk is concerned that this would expose the company to potential environmental liabilities. He tells Daryl, "We would need to estimate some of these potential environmental costs and include them in our analysis." "You can't do that," Daryl replies. "We are not violating any laws. There is some possibility that we may have to incur environmental costs in the future, but if we bring it up now, this proposal will not go through because our senior management always assumes these costs to be larger than they turn out to be. The market is very tough, and we are in danger of shutting down the company and costing all of us our jobs. The only reason our competitors are making money is because they are doing exactly what I am proposing." Print Done