Please help with question 2

Graham's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of 5670,000 and a contribution margin of 70% of revenues Graham feels like he's in a giant squeeze play. The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Graham's contribution margin has shrunk to 50% of revenues. The company's monthly operating income, prior to these pressures, was $30.000 Read the earlie Requirement 1. To maintain this same level of profit, what sales volume in sales revenue) must Graham now achieve? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach Fored expenses Operating income ) - Contribution marpin ratio Target sales in dotas (Round your answer up to the nearest whole dollar) Graham must now achieve sales of $1,400.000 to maintain the same level of profit Requirement 2. If monthly sales are 51,000,000, by how much will he need to cut fixed costs to maintain his prlo profit ievel of 530,000 per month? Fixed expenses can only be 1400000 in order to maintain the prior profit level of $30,000 per month. Therefore, Graham will have to save at least per month in fixed costs by moving operations overseas the piano to maintains prior profit level Requirements 1. To maintain this same level of profit, what sales volume (in sales revenue) must Graham now achieve? 2. Graham believes that his monthly sales revenue will only go as high as $1,000,000. He is thinking about moving operations overseas to cut fixed costs. If monthly sales are $1,000,000, by how much will he need to cut fixed costs to maintain his prior profit level of $30,000 per month? Print Done