Pls answer the all thank you PROBLEM 5-29 Changes in Cost Structure; Break-Even Analysis; Operating Leverage; Margin ofSafety LO5-4, LO5-5, LO5-7, LO5-8Morton Company's contribution format income statement for last month is given below:2.Sales (15,000 units x $30 per unit).Variable expenses.Contribution marginFixed expenses.Net operating income...The industry in which Morton Company operates is quite sensitive to cyclical movements in theeconomy. Thus, profits vary considerably from year to year according to general economic con-ditions. The company has a large amount of unused capacity and is studying ways of improvingprofits.3.$450,000315,000Required:1.New equipment has come onto the market that would allow Morton Company to automatea portion of its operations. Variable expenses would be reduced by $9 per unit. However,fixed expenses would increase to a total of $225,000 each month. Prepare two contributionformat income statements, one showing present operations and one showing how opera-tions would appear if the new equipment is purchased. Show an Amount column, a Per Unitcolumn, and a Percent column on each statement. Do not show percentages for the fixedexpenses.4.135,00090,000$ 45,000Refer to the income statements in (1). For the present operations and the proposed new opera-tions, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales,and (c) the margin of safety in dollars and the margin of safety percentage.Refer again to the data in (1). As a manager, what factor would be paramount in your mind indeciding whether to purchase the new equipment? (Assume that enough funds are available tomake the purchase.)Refer to the original data. Rather than purchase new equipment, the marketing managerargues that the company's marketing strategy should be changed. Rather than pay salescommissions, which are currently included in variable expenses, the company would paysalespersons fixed salaries and would invest heavily in advertising. The marketing man-ager claims this new approach would increase unit sales by 30% without any change inselling price; the company's new monthly fixed expenses would be $180,000; and its netoperating income would increase by 20%. Compute the company's break-even point in dol-lar sales under the new marketing strategy. Do you agree with the marketing manager'sproposal?

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PROBLEM 5-29 Changes in Cost Structure; Break-Even Analysis; Operating Leverage; Margin of Safety LO5-4, LO5-5, LO5-7, LO5-8 Morton Company's contribution format income statement for last month is given below: Sales (15,000 units x $30 per unit). Variable expenses. Contribution margin Fixed expenses Net operating income... 2. $450,000 315,000 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic con- ditions. The company has a large amount of unused capacity and is studying ways of improving profits. 4. 135,000 90,000 $ 45,000 Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $9 per unit. However, fixed expenses would increase to a total of $225,000 each month. Prepare two contribution format income statements, one showing present operations and one showing how opera- tions would appear if the new equipment is purchased. Show an Amount column, a Per Unit column, and a Percent column on each statement. Do not show percentages for the fixed expenses. Refer to the income statements in (1). For the present operations and the proposed new opera- tions, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.) Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing man- ager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $180,000; and its net operating income would increase by 20%. Compute the company's break-even point in dol- lar sales under the new marketing strategy. Do you agree with the marketing manager's proposal?