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Explain it in detail Northern Manufacturing Company produces and sells a single product. Over the past year Northern produced and sold 45,000 units and reported

Explain it in detail

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Northern Manufacturing Company produces and sells a single product. Over the past year Northern produced and sold 45,000 units and reported the following results. Each unit sells for $20. _ 5900.000 Variable expenses 495,000 Contribution margin 405,000 Fixed expenses 360,000 Management has set a goal to increase sales by 9,000 units for this coming year. Management was able to come up with the following three options, each expected to increase the number of units sold by the desired 9,000 units. 1. Increase sales by 9,000 units by increasing the advertising budget by $50,000 2. Increase sales by 9,000 units by decreasing the selling price per unit from $20 to $19 3. Increase sales by 9,000 units by decreasing the fixed salaries of sales representatives by $60,000 and replace it with a commission of $2 per unit Required A. Calculate the contribution margin ratio for Northern Manufacturing based on the results from the past year B. Calculate the break-even point in units based on the results from the past year C. Calculate the impact on operating income for each of the three scenarios proposed to increase sales volume. Each scenario should be considered separately from each other 0. Provide a recommendation to management of Northern Manufacturing based on which option results in the best impact on operating income

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