Polfer Holter LTD has experienced an increase in sales of about 22% during the past year relative to last yearWe do production capacity fast enough Management does not want to continue to turn away projects because it can keep up the A consultant was hired to study the situation and has recommended that consideration be given to the purchase of automated painting The go consultants be a significant move in the right direction This direction is away from manual and toward automation. Unfortunately bout 20 cm who be terminated Poller-Holler's financial management compiled financial information and put together a comparison manual versus automation to be that the more pro Manual Automation Sales $ 5.000.000 $ 5.000.000 Variable Costs 3.200 000 2.500.000 Contribution Margin 1.800.000 2.500 000 Fixed Cost 921.500 1940 000 Net Income s 878.500 S560.000 INSTRUCTIONS (MUST SHOW ALL COMPUTATIONS) 1. Compute the contribution margin ratio for each approach Interpret the contribution margins Be specific 2. What is the beak-even point in sales for each approach? What are the implications of your findings? Be specific 3. Determine the degree of operating leverage for each approach? What would happen to the company's net income for each approach if sales declined 12%? Discuss clearly What would you recommend based on the information provided? What additional information would you like to have? Be Specific