Red Sunset Co. manufactures mobile phones and wants to add a brand new model to its current line of products. The rm has estimated that the new phone's selling price will be $80 and that variable costs would represent 65% of the sale price. Fixed operating costs are estimated to be $15M and the fin'n's marginal tax rate is expected to remain at 35%. The firm also has forecasted that interest expenses associated with the new chip will reach $5M. The firm has 5M of common shares outstanding and forecasts a total prefen'ed dividend payment of $200,000 for the next year. If Fled Sunset Go. expects to sell 1M units of the new phone, then: Rjuired Create an income statement with the previous infatuation Calculate the operating breakeven point in both units and dollars. How many units would Red Sunset Co. need to sell in order to achieve earnings. before interest and taxes of $2M? PPP'F Calculate the degree of operating, financial, and combined leverage. e. Briefly discuss what the leverage figures suggest for the company. f. Use the Goal Seek tool to determine the number of units that would allow Fled Sunset Go. to break even in terms of its net income and the selling price to break even in terms of earnings before taxes. Also, determine with the same tool how much preferred dividends the firm would need to pay to keep a degree of nancial leverage of 2