Question:

Part 1. Gary and Joy developed a neat Bento boxfor children. The shape of the containers encourages healthy eatingand it is very popular. They have been paying another company tomanufacture the boxes for them but are interested in manufacturingthe boxes themselves. They've developed the following costestimates:

Sales (100,000units)$       1,000,000Costs:FixedVariable  RawMaterials$                  0$         300,000  DirectLabor0200,000  FactoryCosts100,000150,000  Selling and AdministrativeCosts110,00050,000TotalCosts$     210,000$        700,000OperatingIncome$           90,000

1. How many units will Gary and Joy need to sell tobreakeven?
2. If Gary and Joy incorporate, and the corporate tax rate is 40%,how many units will they need to sell to earn $90,000 aftertax?

ANSWER

1.70000 Units

2.120000 Units

Part 2.  Gary and Joy are concernedthat the estimated fixed costs are too low. They believe thatthey'll need additional equipment, increasing their fixed costs by$ 31,500. Also, there has been a change in the corporate taxrate.  Adjust your analysis to assume an increase of$31.500 in fixed costs and the new corporate income tax rate.

1. prepare a schedule summarizing the effects of the change.
2. Discuss the impacts on break even units of adding additionalfixed costs.
3. What would the impact on break even units be if the companyincreased advertising by $40,000?

the 2018 corporate tax rate needs to be found online and citedin APA

PT1 was already solved, I just need help with PT2