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please show work for each part, compelte all parts 3,9-51 9-39 CVP Analysis; Profit Planning Horton Manufacturing Inc. (HMI) is suffering from the effects of

please show work for each part, compelte all parts image text in transcribed
3,9-51 9-39 CVP Analysis; Profit Planning Horton Manufacturing Inc. (HMI) is suffering from the effects of in creased local and global competition for its main product, a lawn mower that is sold in discount stores throughout the United States. The following table shows the results of HMI's operations for 2016. Sales (12,500 units@$84) Less variable costs (12,500@$63) Contribution margin Less fixed costs Operating profit (loss) $1,050,000 787,500 $262,500 296,000 S 33,500) Required I. Compute HMI's breakeven point in both units and dollars. Also, compute the contribution margin ratio. (Note: Round the number of breakeven units up to a whole number.) 2. What would be the required sales, in units and in dollars, to generate a pretax profit of $30,000? Assume a combined income tax rate of40%. What would be the required sales volume, in both units a in dollars, to generate an after-tax profit of $30,.000? (Round the number of units up to a whole number.) 3, 4. Prepare a contribution income statement as a check for your calculations in requirement 3 above. 5. The manager believes that a $60,000 increase in advertising would result in a $200.000 increase in an- 6. Refer to the original data. The vice president in charge of sales feels that a 10% reduction in price in 7. Refer to the original data. During 2016, HMI saved $5 of unit variable costs per lawn mower by buying nual sales. If the manager is right, what will be the effect on the company's operating profit or loss? combination with a $40,000 increase in advertising will cause unit sales to increases by 25%, what effect would this strategy have on operating profit (loss)? from a different manufacturer. However, the cost of changing the plant machinery to accommodate the new part cost an additional $50,000 in fixed cost per year. Was this a wise change? Why or why not

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