Show me the steps to solve Omega LTD$.$ produces and sells printing products across Canada. Last year, sales volume totaled

$$850,000.$ Volume for the first five months of the current year totaled $$600,000,$ and sales were

expected to be $$1\mathrm{.}6$ million for the entire year. Unfortunately, the printing business in the

region where Omega is located is extremely competitive. More than $100$ printing shops are all

competing for the same business.

The company currently manufactures one type of high$-$quality printer with the average unit

selling prices, unit variable costs, and direct fixed costs are as follows:

Required:

Calculate the following:

a$.$ Number of printers that are expected to be sold during the current year

b$.$ number of printers that must be sold for Omega to break even

c$.$ sales dollars in order to break even

d$.$ generate a graph which plots the break even analysis

Omega can buy machines that will make the majority of the printer parts. If the

company chooses to purchase the machines, the variable costs will decrease by $8\%$ but

the fixed costs will increase by $$76,000.$ The plan would be to purchase the machine at

the beginning of July. Fixed costs for the company are incurred equally throughout the

year. Calculate the following:

a$.$ impact on operating income

b$.$ new number of printers to break even

c$.$ sales dollars to break even

Omega is considering the option of opening a new retail outlet which will increase

salaries by $$40,000$; insurance by $$10,000$ and rent expense by $$30,000$ per year. This is

expected to increase sales by $23$ percent and the plan would be to open this up at the

beginning of July $($half way through the upcoming year$).$ Calculate the following:

a$.$ Impact on Omega's expected profits for the year

b$.$ new break even point in quantity of printers

c$.$ new break even point in sales dollars