Sun Inc. sells a single product. The company's $2012$ income statement is given below.Sales $(4,000$ units$)\backslash (\backslash$$ $800,000\backslash )$Less flexible $($variable$)$ expenses $\backslash (\backslash$$ $200,000\backslash )$Less capacity$-$related $($fixed$)$ expenses $\backslash (\backslash$$ $300,000\backslash )$In an attempt to improve performance, Jo$,$ the manager is considering a number of alternative actions. Each situation is to be evaluated separately.Required:a$.$ Calculate operating income and the break$-$even point in units and dollars for $2012$b$.$ Jo believes that a $\backslash (\backslash$$ $100,000\backslash )$ increase in equipment improvements will increase sales considerably.How much must sales increase to justify this capital expenditure?c$.$ Jo believes that flexible costs can be decreased by $\backslash (10\backslash \%\backslash ).$ As a result, she wants to reduce the selling price by $\backslash (2\backslash \%\backslash )$ in anticipation of a $\backslash (5\backslash \%\backslash )$ increase in sales. What are projected profits if these proposals are implemented?