The income statement for King Salmon Sales, which produces smoked salmon, follows: Revenue ( 100,000 lbs) $ 800,000 Expenses Fish $ 200,000 20,000 Smoking materials Packaging materials 30,000 Labour (wages) 300,000 Administration 150,000 Sales commissions 10,000 Total expenses 710.000 Pretax income 90,000 Assume that the administrative costs are fixed and that all the other costs are variable. Suppose the provincial government curtails shing because of low fish counts. As a result, King Salmon Sales can buy only 50,000 lbs of salmon this year. Assume that the selling price, the fixed costs, and the variable costs remain the same as last year. Using only quantitative information should King Salmon operate this year? Explain your answer, using calculations. (Hint: Before you begin, identify the type of non-routine operating decision, the decision options, and the relevant information for this decision) (Round answer to 2 decimal places, eg: 5.35) Contribution margin: $ perib salmon If the fixed costs can be avoided by not producing the company produce this year If the fixed costs can not be avoided by not producing the company produce this year Assume that King Salmon can buy up to 70,000 lbs of fish at $ 2.00/bs and that the remainder of the fixed and variable costs remain the same as last year. Also assume that the selling price remains the same as last year and that the market will purchase at least another 30,000 lbs of fish. If the managers of King Salmon wish to sell more salmon, what should they be willing to pay to purchase more fish? (Hint: This type of decision is different from the one in the previous part. Before you begin identity the type of non-routine decision, the decision options, and the relevant information for this decision) (Round answer to 2 decimal places 5.35) Wuling to pay per lo salmon