Cost- volume- profit analysis:

1. Following are the data for a company.Selling price per unit = $1,200,Variable cost per unit =$750Annual total fixed cost = $1,725,000Calculate for the following independent situations.What is the BEP units and BEP in amount ?
2. Company believes that due to positive trends it can increase sales price by 8% andalso its variable costs are to increase by 5% due to increase in Raw material price, what will be new BEP?
3. If sales unit increase by 10,000 units from the BEP level, net operating income should increase by how much amount?
4. Suppose current sales is 3,200 units and management expects that it will increase by 20% , what should be net operating income. Provide incremental analysis
5. Management assumes that reduction in sales price by 5% combined with Advertisement campaign of $1,50,000 will result into increase in sales unit by 15%, what would be the change in net operating profit? Provide incremental analysis.