You are a cost accountant for Hera Technologies, manufacturers of solid-shank rivets that are standard throughout the aerospace industry. Top management is concerned about predictions of an economic downturn which, if realized, well directly affect the company's profitability. Furthermore, the union that represents the organization's machinists has threatened to strike over unaddressed demands to improve benefits and working conditions. Renegotiating its contract with the union to prevent a strike will likely increase Hera's labor costs. Management has asked you to provide a "snapshot" of its current sales and analyze the potential impacts of the economic contraction and the looming union settlement on Hera's earnings. What follows are the most current, monthly averages related to the'organization's operations: Required: . 1. Calculate the contribution margin ratio. 2. Calculate the variable expense ratio. 3. Calculate the breakeven point in units and sales dollars. 4. Calculate the margin of safety in terms of both dollars and units. 5. Estimate the number of units Hera will need to sell to earn a monthly, after-tax profit of $1,500,000. Hera's combined, corporate income tax rate is 21 percent. 6. Calculate the degree of operating leverage. 7. Management expects settling with the union will increase direct labor and fixed manufacturing overhead costs by 20 percent and $23,000 per month, respectively. Based on these projections, calculate the number of units Hera will need to sell just to breakeven. 8. Sales are expected to decrease by ten percent if the predictions of an economic downturn come true. Estimate the impact this decline would have on profitability independent of the union settlement. 9. Estimate the impart n both the drop in sales and the increased costs from the union agreement would have on profitability. You are a cost accountant for Hera Technologies, manufacturers of solid-shank rivets that are standard throughout the aerospace industry. Top management is concerned about predictions of an economic downturn which, if realized, well directly affect the company's profitability. Furthermore, the union that represents the organization's machinists has threatened to strike over unaddressed demands to improve benefits and working conditions. Renegotiating its contract with the union to prevent a strike will likely increase Hera's labor costs. Management has asked you to provide a "snapshot" of its current sales and analyze the potential impacts of the economic contraction and the looming union settlement on Hera's earnings. What follows are the most current, monthly averages related to the'organization's operations: Required: . 1. Calculate the contribution margin ratio. 2. Calculate the variable expense ratio. 3. Calculate the breakeven point in units and sales dollars. 4. Calculate the margin of safety in terms of both dollars and units. 5. Estimate the number of units Hera will need to sell to earn a monthly, after-tax profit of $1,500,000. Hera's combined, corporate income tax rate is 21 percent. 6. Calculate the degree of operating leverage. 7. Management expects settling with the union will increase direct labor and fixed manufacturing overhead costs by 20 percent and $23,000 per month, respectively. Based on these projections, calculate the number of units Hera will need to sell just to breakeven. 8. Sales are expected to decrease by ten percent if the predictions of an economic downturn come true. Estimate the impact this decline would have on profitability independent of the union settlement. 9. Estimate the impart n both the drop in sales and the increased costs from the union agreement would have on profitability