Requirements Question 1 Question 2 1. If no changes are made to the selling price or cost structure, determine the number of units that Brady Engine Company must sell (a) to break even and (b) to achieve its net income objective. 2. Determine which alternative Brady Engine should select to achieve its net income objective. Show your calculations. More Info The first-quarter income statement, as of March 31, reported that sales were not meeting expectations. During the first quarter, only 400 units had been sold at the current price of $6,500. The income statement showed that variable and fixed costs were as planned, which meant that the 2021 annual net income projection would not be met unless management took action. Alternatives a. Reduce the selling price by 15%. The sales organization forecasts that at this significantly reduced price, 2,100 units can be sold during the remainder of the year. Total fixed costs and variable cost per unit will stay as budgeted. b. Lower variable cost per unit by $400 through the use of less-expensive direct materials. The selling price will also be reduced by $550, and sales of 1,590 units are expected for the remainder of the year. c. Reduce fixed costs by 10% and lower the selling price by 20%. Variable cost per unit will be unchanged. Sales of 2,100 units are expected for the remainder of the year. Brady Engine Company manufactures and sells diesel engines for use in small farming equipment. For its 2021 budget, Brady Engine Company estimates the following: (Click the icon to view the budget data.) (Click the icon to view the more information.) A management committee was formed and presented the following mutually exclusive alternatives to the president: (Click the icon to view the alternatives.) Requirement 1a. If no changes are made to the selling price or cost structure, determine the number of units that Brady Engine Company must sell to break even. Select the formula labels, enter the amounts and calculate the breakeven number of engines. =Breakevennumberofunits]=