Wilsar Wilsar Manufacturing sold 410 comma 000 410,000 units of its product for $ 66 $66 per unit in 2017 2017. Variable cost per unit is $ 56 $56, and total fixed costs are $ 1 comma 640 comma 000 $1,640,000. Read the requirements LOADING... . Requirement 1. Calculate (a) contribution margin and (b) operating income. (a) Determine the formula used to calculate the contribution margin. - = Contribution margin The contribution margin is $ . (b) Determine the formula used to calculate the operating income. - = Operating Income Operating income is $ . Requirement 2. Wilsar Wilsar's current manufacturing process is labor intensive. Kate Wolf Wolf, Wilsar Wilsar's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $ 5 comma 330 comma 000 $5,330,000. The variable costs are expected to decrease to $ 38 $38 per unit. Wilsar Wilsar expects to maintain the same sales volume and selling price next year. How would acceptance of Wolf Wolf's proposal affect your answers to (a) and (b) in requirement 1? Recalculate (a) and (b) if the proposal is accepted. (a) The contribution margin would be $ under Wolf's proposal. (b) Operating income would change to $ . Requirement 3. Should Wilsar Wilsar accept Wolf Wolf's proposal? Explain. Operating income is expected to by $ . Based on the operating income alone, Wilsar should the proposal. Manangement would consider other factors before making the final decision. It is likely that product quality improve as a result of using state-of-the-art equipment. However, the proposal the company's fixed cost. This will the company's operating leverage and risk. Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Calculate (a) contribution margin and (b) operating income. 2. Wilsar Wilsar's current manufacturing process is labor intensive. Kate Wolf Wolf, Wilsar Wilsar's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $ 5 comma 330 comma 000 $5,330,000. The variable costs are expected to decrease to $ 38 $38 per unit. Wilsar Wilsar expects to maintain the same sales volume and selling price next year. How would acceptance of Wolf Wolf's proposal affect your answers to (a) and (b) in requirement 1? 3. Should Wilsar Wilsar accept Wolf Wolf's proposal? Explain. PrintDone