REQUIRED . a. Recast the full costing income statement for 2017 into a variable costing format. Does it appear, as Sanjay Patel contends, that the more the company sells, the more it loses? b. Based on the previous information, calculate sales in dollars and units needed to break even in 2018. c. Warren Logan, CFO, has developed assumptions that he believes are reasonable for 2018 and 2019. Using these assumptions, prepare budgeted income statements for 2018 and 2019 using the variable costing method. Are the major investors likely to find forecasted profits encouraging? Assumptions for 2018 1. The company will hire two additional sales managers at a base salary of $90,000 each. 2. R&D will be cut by $1,100,000. 3. Unit sales will increase by 30 percent. Assumptions for 2019 4. The company will hire one additional sales manager at a base salary of $90,000. 5. R&D will be increased by $600,000 over 2018. 6. Unit sales will increase by 60 percent over 2018