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3. Refer to the original data. The president is convinced that a 7% reduction in the selling price, combined with an increase of $65.000 in

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3. Refer to the original data. The president is convinced that a 7% reduction in the selling price, combined with an increase of $65.000 in the monthly advertising budget, will double unit sales. Should the company make these changes? Yes No 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.5 per unit. Assuming no other changes, how many units wousd have to be soid each. month to earn a profit of \$5,100? (Do not round intermediote calculations. Round your onswer up to nearest whole number.) 5. Reler to the original data. By automating. the company could slash its variable expenses in halt. However, fixed costs would increase by $40,800 per month o. Compute the new CM ratio and the new break-even point in both unis and doilars (Do not round intermediate calculations. Round your "Contribution margin ratio" enswer to 2 deeimol pinces. Round your "Breok-even point" onswers up to nearest whole number.) 3. Refer to the original data. The president is convinced that a 7% reduction in the selling price, combined with an increase of $65.000 in the monthly advertising budget, will double unit sales. Should the company make these changes? Yes No 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.5 per unit. Assuming no other changes, how many units wousd have to be soid each. month to earn a profit of \$5,100? (Do not round intermediote calculations. Round your onswer up to nearest whole number.) 5. Reler to the original data. By automating. the company could slash its variable expenses in halt. However, fixed costs would increase by $40,800 per month o. Compute the new CM ratio and the new break-even point in both unis and doilars (Do not round intermediate calculations. Round your "Contribution margin ratio" enswer to 2 deeimol pinces. Round your "Breok-even point" onswers up to nearest whole number.)

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