Need help with #4 the new break even point in doller sales

Morton Company's contribution format income statement for last month is given below: Sales (48,000 units $29 per unit) Variable expenses Contribution margin Fored expenses Not operating income $1,392,000 974.400 417.000 334.000 $ 3.520 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 has a large amount of unused capacity and is studying ways of improving profits. 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 $8.70 pe increase to a total of $751,680 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would (Round your "Por unit answers to 2 decimal places.) Morton Company Contribution Income Statement Present Sales 100% Amount $ 1,392,000 974,400 417,800 334,080 $ 83,520 Per Unit $ 29.00 20.30 $ 8.70 Proposed Amount Per Unit 1,392.000 $ 29.00 666.800 11.60| 835,200 $ 17.40 100% 40% 60% Variable expenses Contribution margin Fixed expenses Net operating income 751,630 83.520 S Break-even point in dollar salos Pront 1,113.600 $ Proposed $ 1.262,800 c. The margin of safety in both dollar and percentage terms. i$ Margin of safety in dollar sales Margin of safety in percentage Present 278,400 20% Proposed $ 139.200 10 3. Refer again to the data in (1) above. 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.) Stock level maintained O Reserves and surplus of the company Performance of peers in the indstry o Cyclical movements in the economy 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be charged. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons foed salaries and would invest heavy in advertising. The marketing manager claims this new approach would increase un sales by 50% without any change in soling price, the company's new monthly foxed expenses would be $417,600, and its net operating income would increase by 25% Compute the break-even point in dollar sales for the company under the new marketing strategy New break even point in dollar sales $ 1.857.600