Riveria Co. makes and sells a single product. The current selling price is $39 per unit. Variable expenses are $17 per unit, and fixed expenses total $39,000 per month. Sales volume for May totaled 4,570 units. Required: a. Calculate operating income for May. b. Calculate the break-even point in terms of units sold and total revenues. (Round your intermediate calculations to the nearest whole dollar.) Break-even volume unit Break-even revenues c. Management is considering installing automated equipment to reduce direct labor cost. If this were done, variable expenses would drop to $11 per unit, but fixed expenses would increase to $63,600 per month c-1. Calculate operating income at a volume of 4,570 units per month with the new cost structure. c-2. Calculate the break-even point in units with the new cost structure. Break-even volume units c-3. Why would you suggest that management seriously consider investing in the automated equipment and accept the new cost structure? As sales volume moves above the break-even point, contribution margin and operating income will by a relatively greater amount than under the old cost structure c-4. Why might management not accept your recommendation but decide instead to maintain the old cost structure? The cost structure has much more risk