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Horton Manufacturing Incorporated $($HMI$)$ is suffering from the effects of increased local and global competition for its main product, a lawn mower that is sold in discount stores throughout the United States. The following table shows the results of HMI$$s operations for $2019$:

Sales $(16,000$ units @ $$84)$ $ $1,344,000$

Variable costs $(16,000$ @ $$63)1,008,000$

Contribution margin $ $336,000$

Fixed costs $369,600$

Operating profit $($loss$)$ $ $(33,600)$

Required:

$1.$ Compute HMI$$s breakeven point in both units and dollars. Also, compute the contribution margin ratio.

$2.$ What would be the required sales, in units and in dollars, to generate a pretax profit of $$30,000?$

$3.$ Assume an income tax rate of $40\%.$ What would be the required sales volume, in both units and dollars, to generate an after$-$tax profit of $$30,000?$

$4.$ Prepare a contribution income statement as a check for your calculations in requirement $3.$

$5.$ The manager believes that a $$60,000$ increase in advertising would result in approximately a $$200,000$ increase in annual sales. If the manager is right, what will be the effect on the company$$s operating profit or loss?

$6.$ Refer to the original data. The vice president in charge of sales feels that a $10\%$ reduction in price in combination with a $$56,000$ increase in advertising will cause unit sales to increases by $25\%.$ What effect would this strategy have on operating profit $($loss$)?$