3 Katie's Kwilts manufactures machine sewn quilts and sales have been lower than expected. The company's Income Statement in the contribution margin format for the most recent month of February 2019 is below: Sales (350 units at $175 per unit) Variable expense Contribution Margin Fixed expenses Net Operating Loss 61,250 19,250 42,000 45,000 (3,000) ou Required: a. What is the current contribution margin ratio? Calculate the break-even point in Sales: (a) units and (b) dollars. Refer to the original data. Katie decides to decrease the selling price by 15% and increase her advertising budget by $5,000. Prepare a revised income statement. d. Refer to the original data. Katie wants a target profit of $30,000, calculate the total Sales: (a) units and (b) dollars to reach that target. Refer to the original data. Katie's fabric (variable) vendor goes bankrupt and Katie must purchase fabric from a new source; the cost per unit changes to $58/unit. The great news is that Katie found a new location which decreases her rent by 40%. o