Please help me with parts 1-6!

Pat Miranda, the new controller of Vault Hard Drives, Incorporated, has just returned from a seminar on the choice of the activity level in the predetermined overhead rate. Even though the subject did not sound exciting at first, she found that there were some important ideas presented that should get a hearing at her company. After returning from the seminar, she arranged a meeting with the production manager, J. Stevens, and the assistant production manager, Marvin Washington. Traditional Approach to Computation of the Predetermined Overhead Rate Estimated total manufacturing overhead cost, $2,158,000/ Estimated total units produced, 83,000=$26.00 per unit New Approach to Computation of the Predetermined Overhead Rate Using Capacity in the Denominator Estimated total manufacturing overhead cost at capacity, $2,158,000/ Total units at capacity, 100,000 units =$21,58 per unit J.t Whoall I don't think I like the looks of that "Cost of unused capacity." If that thing shown up on the income statenent, soneone troa headquarters in likely to come down here looking for some people to lay oft. Marvint I'm vorried about something else too. What happens when nales are not up to Pats. expectations? Can wo pull the "hat trick"? 3.1 Marvin's talking about something that happens fairly regularly. When sales are down and protits look like they are going to be lower than the president told the owner they vere going to be, the president comes down here and asks ue to deliver some nore profite. Marvini And ve pull them out of our hat. J.t Yeah, we just increase production unti2 we get the profits we want. Pat: I still don't understand. You mean you increase nales? J.4 Nope, we increase production. We're the production managers, not the sales managera. Pat: I get it, Because you have produced more, the sales force bas more unita it ean sell. J.t Nope, the marketing people don't do a thing. No just build inventories and that does Required: In all of the questions below. assume that the predetermined overhead rate under the traditional method is $26 per unit, and under the new capacity-based method it is $21.58 per unit 1. Assume actual sales is 77,000 units and the actual production in units, actual selling price, actual variable manufacturing cost per Required: In all of the questions below, assume that the predetermined overhead rate under the traditional method is $26 per unit, and under the new capacity-based method it is $21.58 per unit 1. Assume actual sales is 77,000 units and the actual production in units, actual selling price, actual variable manufacturing cost per unit, and actual fixed costs all equal their respective budgeted amounts, Given these assumptions: a. Compute net operating income using the traditional income statement format. b. Compute net operating income using the now income statement format. 2. What effect does the new capacity-based approach have on the volatility of net operating income? 3. Assume that actual sales is 77,000 units and the actual selling price, actual variable manufacturing cost per unit, and actual fixed costs all equal their respective budgeted amounts. Under the traditional approach, how many units would have to be produced to realize net operating income of $272,000 ? 4. Assume that actual sales is 77,000 units and the actual selling price, actual variable manufacturing cost per unit, and actual fixed costs all equal their respective budgeted amounts. Under the new capacity-based approach, how many units would have to be produced to realize net operating income of $272,000 ? 5. Will the "hat trick" be easier or harder to perform if the new capacity-based method is used? 6. Do you think the "hat trick" is ethical