4. (18 pts.) Harry's Golf Club sells a standard golf package to all its customers. See below the contribution format income statement of the company for the most recent year, in which 80,000 golf packages were sold: Per Unit 150 Sales revenue Variable expenses Contribution margin Fixed expenses Net operating income 90 Total 12,000,000 7,200,000 4,800,000 3,100,000 1,700,000 Percent of Sales 100% ? ? 60 In order to increase this company's profitability, help run the following analyses. a. Calculate the company's CM ratio and variable expense ratio. b. Compute the company's break-even point in both unit sales and dollar sales. C. The management predicts that sales will increase $800,000 next year. If cost behavior patterns remain unchanged, by how much will the company's net operating income increase? Use the CM ratio to compute your answer. d. Refer to the original data. Assume that next year management wants the company to earn a net operating income of $2,000,000. How many golf packages will have to be sold to meet this target profit? What should be the sales revenue at this level of sales volume? e. In order to increase net operating income, the management plans to improve sales force by hiring 2 additional full-time employees, which will cost $60,000 for the year. Also, the management plans to improve the course maintenance to improve field quality. This will result in $2 increase in variable expenses per unit. Making these changes, the management predicts that annual sales volume will increase by 12%. i. Compute the company' new break-even point in both unit sales and dollar sales. ii. Would you recommend that the changes be made? Why or why not