Popcorn Co. currently sells plain popcorn at the various Carnivals and Special Events. During a typical month the stand total sales of $100,000 and staff that is paid a fixed amount of $30,000 per month and other fixed costs of $12,000 per month and variable costs of $0.64 per box and price is $1.60 per box. In the upcoming season Popcorn Co. is deciding on the direction they'd like to go, here are the options they are considering: OPTION 1 Status quo. Do nothing, all costs and total sales for the monthly would remain the same. OPTION 2 They can lease new equipment for $8,000 per month. This new equipment is more efficient and will decrease their variable costs by 25%. Assume total sales per month will be the same as the prior monthly sales. OPTION 3 They took a survey and found most places sell candy coated popcorn as well as the plain popcorn. If they plan to start selling candy-coated popcorn the price would be $3 a box. The candy-coated popcorn will have a variable cost of $0.72 per box. The new equipment and personnel to handle the popcorn will increase monthly fixed costs by $17,000. The original analysis stated that for every two boxes of candy-coated popcorn sold, they would sell one box of plain popcorn. They will NOT lease the new machine under this option. The expected demand is 30,000 units of the Candy-Coated and 15,000 units of the plain. REQUIRED: 1. OPTION 1 a. Calculate the typical monthly break-even sales in units OR Sales dollars if Popcorn Co. chooses to not change anything. b. What is the margin of safety? (units OR Sales Dollars) 2. OPTION 2 a. Determine the typical monthly break-even sales in units OR Sales dollars if Popcorn Co. chooses OPTION 2. b. Comparing Option 1 with Option 2, which would you recommend, comment briefly? 3. OPTION 3 a. Determine the monthly break-even sales per unit OR Sales dollars of each product if Popcorn Co. chooses OPTION 3. (assuming they do NOT lease the new equipment, assume a constant sales mix, hint multi-product CVP)