Corporation has experienced volatile sales of it's product and suffered a loss this month.

Corporation sold 16,000units for the month and has the following income statement:

Sales $480,000

Variable expenses (336,000)

Fixed expenses (180,000)

Net loss $(36,000)

1. Compute Corporation'scontribution margin ratio.
2. Compute thebreak-even point for Corporationin units
3. Compute thebreak-even point for Corporation in Sales Revenue($).
4. Assume for this part of thequestion only that the president of Corporation believes a 10% decrease in the sales price and a $10,000 increase in the advertising costs will double the volume of sales next month.

If this is correct,

D1.What will bethecontribution margin per unitnext month?

D2. What will Corporation report as thenet income or loss next month?