Required information [The following information applies to the questions displayed below.) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo Data relevant to the systems follow. Model no. 6754 Variable costs, $19.00 per unit Annual fixed costs, $986,400 Model no. 4399: Variable conts, $11.80 per unit Annual fixed costs, $1,114,200 Corrigan's selling price is $67 per unit for the universal gismo, which is subject to a 10 percent sales commission. In the following requirements, ignore income taxes.) 2-a. Calculate the net income of the two systems if sales and production are expected to average 43,000 units per year. Net Income Model No. 6754 Model No. 4399 2-b. Which of the two systems would be more profitable? O Model No. 6754 . Model No. 4399 Required information [The following information applies to the questions displayed below.) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product the universal gismo. Data relevant to the systems follow. Model no. 67541 Variable costs, $19.00 per unit Annual fixed costs, $986,400 Model no. 43991 Variable costs, $11.80 per unit Annual fixed costs, $1,114,200 Corrigan's selling price is $67 per unit for the universal gismo, which is subject to a 10 percent sales commission. In the following requirements, ignore income taxes.) 3. Assume Model 4399 requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $460,000 and will be depreciated over a five-year life by the straight-line method. How many units must Corrigan sell to earn $958,000 of income if Model 4399 is selected? As in requirement 2, sales and production are expected to average 43,000 units per year (Do not round intermediate calculations and round your final answer up to nearest whole number.) Reguted sales 40,000 units ! Required information [The following information applies to the questions displayed below) Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow Model no. 67541 Variable costs, $19.00 per unit Annual fixed costs. $986,400 Model no. 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,200 Corrigan's selling price is $67 per unit for the universal gismo, which is subject to a 10 percent sales commission. (In the following requirements, Ignore income taxes.) 4. Ignoring the information presented in part 3, at what volume level will the annual total cost of each system be equal? (Do not round intermediate calculations and round your final answer up to nearest whole number.) Volume level units Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.) $1,450,000 453,000 626,000 Sales revenue Manufacturing costs: Fixed Variable Selling costs Fixed Variable Administrative costat Fixed Variable 29,000 59,000 69,000 24,000 Required: 1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution Income statement for the company 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement 3? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Reg 4 Prepare a traditional income statement for the company, EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Sales Cost of goods sold Gross margin $ Operating expenses: Selling expenses Administrative expenses Administrative expenses $ 0 R14 Reg 18 > Europa Publications, Inc., specializes in reference books that keep abreast of the rapidly changing political and economic issues i Europe. The results of the company's operations during the prior year are given in the following table. All units produced during th year were sold. (Ignore income taxes.) $1,450,000 453,000 626,000 Sales revenue Manufacturing costs Fixed Variable Selling costs: Fixed Variable Administrative costat Fixed Variable 29,000 59,000 69,000 24,000 Required: 1-a. Prepare a traditional income statement for the company, 1-b. Prepare a contribution income statement for the company. 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement 3? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2 Reg 3 Reg 4 Prepare a contribution income statement for the company. EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Variable expenses 0 $ 0 Fixed expenses 0 0 Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing poitical and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.) $1,450,000 453.000 526,000 Sales revenue Manufacturing costo Fixed Variable Selling costat Fixed Variable Administrative COSES: Fixed Variable 29,000 59,000 69,000 24,000 Required: 1-a. Prepare a traditional income statement for the company 1-b. Prepare a contribution income statement for the company, 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? 4. Which income statement would en operating manager use to answer requirement 3? Complete this question by entering your answers in the tabs below. Reg LA Regle Reg 2 Reg 3 Reg 4 What is the firm's operating leverage for the sales volume generated during the prior year? (Round your answer to 2 decimal places Operating lenge Europa Publications, Inc., specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (ignore income taxes.) $1,450,000 453,000 626,000 Sales revenue Manufacturing costs: Fixed Variable Selling costs Fixed Variable Administrative costo: Fixed Variable 29,000 59,000 69,000 24,000 Required: 1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution income statement for the company. 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement 3? Complete this question by entering your answers in the tabs below. Reg LA Reg 1B Reg 2 Reg 3 Reg 4 Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? (Do not round intermediate calculations, Round your answer to 1 decimal place.) Percentage increase in net income %