Cost-Volume-Profit Analysis Q1. Finestra Corporation produces a single product that it currently sells for $10. Fixed expenses are $120,000 for the year and variable expenses are $6 per unit. In addition Finestra's salespersons are paid a commission of 10% of their sales. 1) If Finestra spends an additional $10,000 on advertising, increases its selling price to $12 per unit, and sells 60,000 units, calculate net operating income. 2) A customer has just approached Finestra to make a special, one-time purchase of 10,000 units. These units would not be sold by the salespeople, and therefore no commission would have to be paid. How much price should Finestra charge on this special order to earn an additional profit of $40,000? Q2. Fletcher Company has three products with the following characteristics: Product A Product B Product C Monthly Sales in Dollars$60,000 $80,000 $100,000 16% Contribution Margin Ratio 20% 4096 If total units sold remain unchanged, but the sales mix shifts more heavily toward Product C what would you expect the overall contribution margin ratio to be? Explain briefly. At an activity level of 4,500 machine-hours in a month, Novosel Corporation's total variable maintenance and repair cost is $394,830 and its total fixed maintenance and repair cost is $105,570. What would be the total maintenance and repair cost both fixed and variable, at an activity level of 4,600 machine-hours in a month? Assume that this level of activity is within the relevant range. Q3