Smithson Company manufactures a high-quality line of antiqued barometers. The budgeted income statement for 2017 follows: Smithson expects to sell all 636,000 barometers they will manufacture in 2017. Use good format, and show oil calculations: 1. What is Smithson's breakeven point, in units and revenues, given the above data? 2. How many barometers must Smithson sell to gain a targeted operating income of $3, 300,000? 3. How many barometers must Smithson sell to gain a targeted net income of $3, 300,000, given a tax rate of 40%? 4. Smithson estimates that reducing the sales price to $37.50 would result in a 15% increase in units sold. Should Smithson reduce the sales price? Why or why not? 5. Smithson has the opportunity to sell 100,000 barometers to a non-recurring customer for $27 per barometer. The barometers will be packaged and sold using the customer's logo. Packaging costs will $1 per barometer, but Smithson will not incur its normal variable selling costs. If Smithson accepts the offer, it will also pay a $30,000 commission to the salesperson calling on this customer. This sale will not interfere with current planned sales, and is within the company's relevant range. Should Smithson accept the offer? Why or why not? 6. Smithson is considering developing a second product, a kit to mount its barometers on the wall. Marketing projections indicate that Smithson would sell one wall mount kit for every three barometers sold; Smithson would incur a production cost of $3 per kit and sales cost of $1 per kit, plus additional manufacturing fixed costs of $500,000 and marketing fixed costs of $14,000 The kits would sell for $10 each, (a) What is the breakeven point if Smithson produces both barometers and kits? (b) Given their current sales plans for barometers, should Smithson produce the kit? Why or why not