Digital Phone Company manufactures and distributes specialized phones mostly to businesses. With intense competion from surrounding distributors, Digital Phone pays sales people commission on each sale. Below is a breakdown of fixed and variable costs. Per Unit Sales $75 Variable Expenses Production Commission $40 $5 $45 Fixed Costs Rent Advertising Salaries Other Total Fixed Costs $10,000 $35,000 $140,000 $75,000 $260,000 Required: a. Calculate break even point in dollars and sales for Digital Phone. b. If 20,000 phones are sold this year, what will the net operating income for Digital Phone Company be? c. If commission is increased by $1.50 per unit sold and the result is 12% increase in unit sales, what will the new net operating income be? d. Refer to the original data. If a $25,000 increase in advertising costs yields a 7% increase in unit sales, what will the new net operating income be? e. Refer to #d. What is the new break even point in units and sales? f. Of all the alternatives given, which is the best based on quantitative data only