Van Diesen Enterprises produces a single product. It sold 25,000 units in the past year with the following results. Sales $625,000 Variable costs $ 375,000 Fixed costs 150,000 525,000 Operating income before taxes 100,000 Income taxes (45%) 45,000 Net income $ 55,000 In an attempt to improve its product in the coming year, the company is considering replacing a component in its product that has a cost of $2.50, with a new and better part costing $4.50 per unit. A new machine will also be needed to increase plant capacity. The machine would cost $18,000 with a useful life of six years and no salvage value. The company uses straight-line depreciation on all plant assets for both financial statements and tax purposes. 1. What was the companys break-even point in number of units for the past year? (4 marks) 2. How many units of product would the company have had to sell in the past year to earn $77,000 in net income? (4 marks) 3. If the company holds the sales price constant and makes the suggested changes, how many units of product must be sold in the coming year to break even? (2 marks) 4. What is the operating income if the suggested changes are implemented? (4 marks) 5. What was the margin of safety for the past year? (2 marks) 6. What was the contribution margin ratio for the past year? (2 marks