Kalifo Company manufactures a line of electric garden tools that are sold in gen

Kalifo Company manufactures a line of electric garden tools that are sold in general hardware stores. The companys controller Sylvia Harlow has just received the sales forecast for the coming year for Kalifos three products: weeders hedge clippers and leaf blowers. Kalifo has experienced considerable variations in sales volumes and variable costs over the past two years and Harlow believes the forecast should be carefully evaluated from a cost-volume-profit viewpoint. The preliminary budget information for 1996 is presented below.For 1996 Kalifos fixed factory overhead is budgeted at $2 million and the companys fixed selling and administrative expenses are forecast to be $600000. Kalifo has a tax rate of 40 percent.Required: