THe following numbers were obtained from the income statement of a pasta manufacturer

Net Sales $100,000,000

COGS $80,000,000

Fixed Costs and Expenses $6,500,000

Other Variable costs and expenses $950,000

Semi-fixed costs (1/2 fixed; 1/2 variable) $1,100,000

i. Calculate the company's Contribution to Overhead and Break-Even sales level. Does the company break-even? What are its profits/losses?

ii. The company's management has been notified that tomatoes' prices are expected to increase, resulting in an increase of COGS by 10%. How will this change affect the Break-even sales level? What are the company's profits/ losses?

iii. Alternatively, the company can purchase lower quality tomatoes, at a lower price, which would maintain a COGS at $80,000,000: however, the resulting product will have lower quality and must be sold at a lower price, resulting in net sales 8% lower than the initial level. Calculate the new break-even point and the new profits and discuss BRIEFLY (one sentence) if the company should purchase the lower-quality tomatoes or pay the addtional 10% for the higher quality ones.