Please help. im so lost. multiple part accounting problem.

Transcribed image text: Cost/Volume/Profit Analysis Morton Company's contribution format income statement for last month is given belowz The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits: Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations Variable expenses would be ieduced by $6,60 per unit. However, fixed expenses would increase to a total of $558,360 each month. Prepare two contribution format income statements, one showing present operations and one showing how operotions would appear if the newequipment is purchosed 2 Refer to the income stotements in (1). For the present operations and the proposed new operations, compute (0) the degree of operaving leverage. (b) the break-even, point in dollor sales, and (c) the morgin of safety in dollors and the margin of safety percentage 3. Refer again to the date in (1). As a manager, whot factor would be paramount in your mind in deciding whethet fo purchose the new equipment? (Assume that enough funds ore avalable to moke the purchose) 4. Refer to the original doto. Rother than purchase new equipment, the marketing manoger argues that the compony's marketing strotegy stiould be chenged. Rather thon pay sales commissions, which are currently included in variafle expenses, the compony Required: 1. New equipment has come onto the market that would allow Morton Company to automote a portion of its operations, Variable expenses would be reduced by $6.60 per unit. However, fixed expenses would increase to a total of $558,360 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the matgin of safety in dollars and the margin of safety percentage 3. Refer again to the dato in (1). As a manager, what factor would be paramount in your m ind in deciding whether to purchase the new equipment? (Assume that enough funds are avallable to make the purchase) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be chariged. Rather than pay sales commissions, which are currently included in voriable expenses, the company would pay salespersons fixed solaries and would invest heavily in advertising the matketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $463,232 : and its net operating income would increase by 20%, Compute the company's break-even point in dollar sales under the new marketing strotegy Complete this question by entering your answers in the tabs below. New equipment has come onto the market that would allow Morton compony to automate a portion of its opetations. Varlable expenses would be reduced by $6,60 per unit. However, fixed expenses would increase to a total of $558,360 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (Round "per Unit" to 2 decimal places?) strategy. Complete this question by entering your answers in the tabs below. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $6.60 per unit. However, fixed expenses would increase to a total of $558,360 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (Round "Per Unit" to 2 decimal places.) strategy. Complete this question by entering your answers in the tabs below. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage, (Do not round intermediate calculations. Round your percentage answers to 2 dedmal places (i.e. .1234 should be entered as 12.34).) Complete this question by entering your answers in the tabs below. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purc the new equipment? (Assume that enough funds are available to make the purchase.) \begin{tabular}{|l|} \hline Cyclical movements in the economy \\ \hline Reserves and surplus of the company \\ \hline Performance of peers in the industry \\ \hline Stock level maintained \\ \hline \end{tabular} Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently induded in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager daims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $463,232; and its net operating income would increase by 20%. Compute the company's break-even point. in dollar sales under the new marketing strategy. (Hint: figure out the new variable cost per unit by preparing the new contribution format income statement.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)