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In: AccountingProblem 3The following information is available for Hearst Company.Sales Price$60Variable manufacturing costs...Problem 3The following information is available for Hearst Company.Sales Price$60Variable manufacturing costs-34Sales commission10% of salesprice-6Fixed costs$180,000Answer the following questions1What is the contribution margin?2What is the CM ratio?3What is the income if we sell 8,000 units?4What is the break-even point in units?, in dollars?5How many units must be sold to earn $40,0006The tax rate is 30%. How many units must be sold to earn $45,000after taxes?7A new machine will reduce variabe costs by $5 per unit.They are selling 12,000 units now.8Refer to the original data. They are currently selling 12,500units.They want to lower the sales price to $56. How many units musttheysell to earn as much as they do now with the new numbers?