Whlamis Steel Parts produces parts for the aulomobile industry. The company has moathly fixed exponses of $030,000 and a contribution margin of 85% of revenues. Waiam foels like he's in a giant squeeze play. The aulomotive manufocturers are demanding lower prices, and the steel producers have increased raw material costs. Willarr's contribution margin has shrunk to 55% of revenues. The company's monthly ogerating incorne, prior to these pressures, was $220,000 Read the reaviements. Requirement 1. To maintain this same level of prost, whot sales volume (in saves revenuo) must Willam now achieve? Begin by idernityeng the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Enues. The company's monthly operating income, prior to these pressures, was $220,000. d the requirements. uirement 1. To ma Requirements in by identifying the 1. To maintain this same level of profit, what sales volume (in sales revenue) must William now achieve? 2. William believes that his monthly sales revenue will only go as high as $1,000,000. He is thinking about moving operations overseas to cut fixed costs. If monthly sales are $1,000,000, by how much will he need to cut fixed costs to maintain his prior profit level of $220,000 per month