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The following data is available for Milford Vinegar Co: Bottles Output level: (in units) 10,000 15,000 20,000 Sales price per bottle: 18.00 15.00 12.00 Variable production costs: 37,000 55,500 74,000 Fixed production costs: 100,000 100,000 100,000 Fixed selling and administrative costs: 40,000 40,000 40,000 Total costs: 177,000 195,500 214,000 Requirements: 1. Prepare a contribution margin income statement for each level of production, include per unit detail. 2. Assuming that the company will sell all output - At what level is profit maximized? 3. Calculate the break even point in dollar sales and units for each level of production 4. Analyze the pricing schedule that Milford is using - Why might Milford offer a lower customer price at higher production levels? 5. Management believes that by dropping the price to $10.50 per bottle and paying their sales staff a commission of 50 cents per bottle it can sell 24,000 bottles - Do you recommend this approach? Provide proof/support for your answer Explain what the management should be considering in making this decision