What What would be the correct solution for parts A, B, & C.? The above solutions were not right.

Please note units sold *Remainder of the year*

Thank you.

Stone Engine Comparny manufactures arnd sells diesel engines for use ir sml farming equipent For ils 2017 budget, Stone The ie staternent showed that variable ad fixed costs were as planned, whith rieant that the 2017 annul net income projection would nolb mel uriless managernenl look action. A managemenl commillee was foed and presenled the following mutually cxclusivc allernatives to the president Engine Company esirnales Ue followirg. iCick th6 icon to view the budget dela.) The first quarter income statement, as of March 31, reported that sales were not meeting expectations. During the first quarter, only 350 units had been sold at the current price of $8,500. (Click the icon to view the allenalives.) Read the requirements Quantity of units 1 More Info Target operating income 1,400,000 n margin per unitrequired to be sold 3,500 Fixed costs 1,025,000 1,550 Requirement 2. I etemnine which altemarve stonengine should select to achieve its net inrarne nhjertwe Show your calculatons Reduce the selling price by 15%. The sales org nization forecasts that at this significantly raduced price, 1.850 unils can be soid during the remainder of the ear a. Evaluate each of the alternatives presented by the management committee, begin with alternative a. Total fixed costs annd variable cst pe n ll stay as budgeted. Alternative b. Lower variable cst per unil by 3675 through the use oles-exerisive direcl materials Data Table The sellig prios will aso be educed by 5750, and sales of 1,230 urits are expecled fo the remainder of thc year Reduce be unchanged. Sales of 1 8DD units are cxpocted for the remainder of the yoar 1381250D Revenuc Variable costs Contribution margin Fxed costs Operating income Income taxes Net income c. by 15% and lower the selling price by 20%. Variable cost per unit will 4562500 4025000) 5375DD Selling price Variable cost per engine Annual fixed costs Nel irncomie Income lax rate 8,500 5,000 S 1,025,000 5 900,000 S Print Done 30%