PART 1 Husky Machinery makes three models of its specialized machines for the boat building industry....

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PART 1 Husky Machinery makes three models of its specialized machines for the boat building industry. Data for the three models for the last fiscal year are as follows: Sales Volume (units) HM 1 130 HM 2 350 HM 3 65 Unit Selling Price $ 150,000 Variable Cost per unit $112,500 $ 200,000 $120,000 $ 300,000 $ 135,000 | Allocated Fixed Manufacturing Cost per unit $ 30,000 $ 60,000 $ 120,000 Additional Fixed Costs are $5,000,000 in selling, administration, and general. The company faces serious competition and believes it has no room to increase its selling prices. Required 1. Assuming the existing sales mix, calculate the company's break-even point in sales dollars and number of units. Your answer should identify the number of HM 1, HM 2, and HM 3 units. (3 pts) 2. Assuming the existing sales mix, calculate the sales revenue required to earn net income of $6,000,000 assuming a 25% income tax rate. (4 pts) 3. What impact would doubling the number of HM 2 units sold next year have on the overall breakeven point in sales dollars? (Assume there would be no change in the number of HM 1 or HM 3 units sold, nor would fixed costs change). (5 pts) The next two questions are independent of each other: 4. The company is considering a new advertising campaign that will cost $4,800,000 next year. How many additional units of each product must be sold to justify the new campaign (assuming no change in the sales mix). (3 pts) 5. Husky Machinery is considering adding a new product - the HM 2+. HM 2+ will sell for $250,000 per unit and have variable costs of $150,000 per unit. Additionally, there would be a $1,200,000 increase in total fixed costs. Introducing HM 2+ will reduce annual sales of HM 2 and HM 3 by 10% each but would have no impact on sales of Homeowner. How many units of HM 2+ would need to be sold to justify adding it to Husky's product line? (5 pts) PART 1 Husky Machinery makes three models of its specialized machines for the boat building industry. Data for the three models for the last fiscal year are as follows: Sales Volume (units) HM 1 130 HM 2 350 HM 3 65 Unit Selling Price $ 150,000 Variable Cost per unit $112,500 $ 200,000 $120,000 $ 300,000 $ 135,000 | Allocated Fixed Manufacturing Cost per unit $ 30,000 $ 60,000 $ 120,000 Additional Fixed Costs are $5,000,000 in selling, administration, and general. The company faces serious competition and believes it has no room to increase its selling prices. Required 1. Assuming the existing sales mix, calculate the company's break-even point in sales dollars and number of units. Your answer should identify the number of HM 1, HM 2, and HM 3 units. (3 pts) 2. Assuming the existing sales mix, calculate the sales revenue required to earn net income of $6,000,000 assuming a 25% income tax rate. (4 pts) 3. What impact would doubling the number of HM 2 units sold next year have on the overall breakeven point in sales dollars? (Assume there would be no change in the number of HM 1 or HM 3 units sold, nor would fixed costs change). (5 pts) The next two questions are independent of each other: 4. The company is considering a new advertising campaign that will cost $4,800,000 next year. How many additional units of each product must be sold to justify the new campaign (assuming no change in the sales mix). (3 pts) 5. Husky Machinery is considering adding a new product - the HM 2+. HM 2+ will sell for $250,000 per unit and have variable costs of $150,000 per unit. Additionally, there would be a $1,200,000 increase in total fixed costs. Introducing HM 2+ will reduce annual sales of HM 2 and HM 3 by 10% each but would have no impact on sales of Homeowner. How many units of HM 2+ would need to be sold to justify adding it to Husky's product line? (5 pts)