Please complete the Problem as follows:

This year Blinko Company earned a disappointing $4\%$ after$-$tax return on sales $($Net

Income$/$Sales$)$ from marketing $50,000$ units of its only product. The company buys its product in

bulk and repackages it for resale at the price of $$20$ per unit. Blinko incurred the following costs

The marketing manager claims that next year's results will be the same as this year's unless some

changes are made. The manager predicts the company can increase the number of units sold by

$60\%$ if it reduces the selling price by $20\%$ and upgrades the packaging. This change would

increase variable packaging costs by $20\%.$ Increased sales would allow the company to take

advantage of a $25\%$ quantity purchase discount on the cost of the bulk product. Neither the

packaging change nor the volume discount would affect fixed costs, which provide an annual

Required

$1-$ Compute the break$-$even point in dollar sales under the $($a$)$ existing business strategy and $($b$)$

new strategy that alters both unit sales price and variable costs.

Use the following format to start your calculation:

$2-$ Prepare a forecasted contribution margin income statement with two columns showing the

expected results of $($a$)$ the existing strategy and $($b$)$ changing to the new strategy. The

statements should report sales, total variable costs $($unit and packaging$),$ contribution

margin, fixed costs, income before taxes, income taxes, and net income. Also determine the

after$-$tax return on sales for these two strategies.