Please help with 1,2,3,4

2.50 points Morton Company's contribution format income statement for last month is given below Sales (48,000 units $29 per unit) Variable expenses Contribution margin Fixed expenses Not operating income $1.392,000 974,400 417,600 334080 $ 33,520 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profts vary considerably from year to your according to general economie 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 toutomate a portion of its operations. Variable expenses would be reduced by 58.70 per unit. However, fed expenses would Increase to a total of $751,680 each month. Prepare two contribution format income arents, one showing present operations and one showing how operations would appear if the new equipment purchased (Round your "Per unit answers to 2 decimal places.) Morton Company Contribution Income Statement Amount Per Un 2.Refer to the income statements in (1) above. For both present operations and the proposed new operations, compute a. The degree of operating leverage. Present Proposed Degree of operating leverage b. The break-even point in dollar sales. Present Proposed Break-even point in dollar sales c. The margin of safety in both dollar and percentage terms. Present Proposed Margin of safety in dollar sales Margin of safety in porcentage invour mind in deciding whether to purchase the new equipm Margin of salety in dollar sales Margin of wat in percentage 3. Refer again to the data in (1) above. As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment Assume that enough funds are a purchase.) ble to make the Reserves and surplus of the company Stock level maintained Cyclical movements in the economy Performance of peers in the indstry 4. 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 was commissions, which are currently included in variable expenses, the company would pay ons we e s and would invest heavily in advertising. The manting manager daim this new approach would increase unt sales by 50% without any change in sing price the company's new monthly wed expenses would be 1417500, and net operating income would by 25% Compute the brave point in der for the company under the new marketing strategy New even point in dose References Book & Resources Financial Statements Difficulty: 2 Medium Lac break even point