Joey Company manufactures a product that sells for \(\$ 27\) per unit. Its variable costs are \(\$ 15\) per unit, and its fixed costs are \(\$ 132,000\) per year.

a. What is the product's contribution margin ratio?

b. What is the breakeven point in sales dollars?

c. Assume that sales go up \(\$ 60,000\) next year. If fixed costs do not change, how does the increase affect net income (or net loss)?

d. If Joey spends \(\$ 30,000\) on advertising, sales should go up \(\$ 60,000\). If the increased sales do not change the company's contribution margin ratio, should Joey buy the advertising?