5. Calculate the expected profits if the sales price is increased by $0.20 per hamburger, given this will reduce sales to 190,000 hamburgers sold, but hold costs at the same levels. 6. Calculate the profit or loss if variable costs are reduced by $0.25 per hamburger by introducing fish (discovered that the raw material fish is in abundant supply relative to beef) in place of beef in the burger. Expected sales will be reduced to 190,000 fish-burgers @ $2.50 each sales price. 7. Calculate the profit or loss if management spends $20,000 on advertising to increase sales to 205,000 hamburgers. Sales price is $2.50 each, with $1.25 VCPU. 8. First, what is the contribution margin ratio for hamburgers in #5 above? Second, what is the contribution margin ratio for the fish burgers in #6 above? Third, which option should be chosen? 9. Management has heard about Fred's Dogs, a new hotdog brand that is setting world sales records. They consider using frozen fish (again, abundant raw material that is cheap) to make fish dogs to compete with Fred. The selling price of a fish dog would be $1.75. Variable costs would be $0.50 per dog. The additional fixed costs incurred for this product line would be the same as for hamburgers $200,000. Determine if management should adopt Fish Dogs as a second line, or if it should become the primary flagship product? You must demonstrate your answer with computations employing the contribution margin ratio concept. 10. After introducing the Fish Dog product, it appears to have a limited market appeal. Given that can now only be able to sell 100,000 units, what is the profit or loss on Fish Dogs at this level of sales? So what happened