Fidelity Multimedia sells audio and video equipment and care stereo products. After performing a sutdy of fixed and variable costs in the prior year, the company prepared a prdocut-line profit statement as follows:

Fidelity Multimedia

Profitability Analysis

For the Year Ended December 31, 2014

	Audio	Video	Car	Total
Sales	$3,250,000	$1,950,000	$1,300,000	$6,500,000
Less variable costs:
Cost of merchandise	1,920,000	1,374,000	617,000	3,911,000
Salary, part-time staff	192,500	108,000	59,000	359,500
Total variable costs	2,112,500	1,482,000	676,000	4,270,500
Contribution margin	1,137,500	468,000	624,000	2,229,500
Less direct fixed costs:
Salary, full-time staff	325,000	240,000	220,000	785,000
Total	$812,500	$228,000	$404,000	$1,444,500
Less common fixed costs:
Advertising				115,000
Utilities				25,000
Other administrative costs				570,000
Total common fixed costs				710,000
Profit				$734,500

a. Calculate the contribution margin rations for the audio,video, and car product lines

b. What would be the effect on profit of a $125,000 increase in sales of audio equipment compared with a $125,000 increase in sales of video equipment or a $125,000 increase in sales of car equipment? Based on this limited information, which product line would you recommend expanding?

c. Calculate the break-even level of sales dollars for the company as a whole. (Round to the nearest dollar)

d. Calculate sales needed to achieve a profit of $1,800,000, assuming the current mix. (round to the nearest dollar)

e. Determine the sales of audio, video, and car products in the total sales amount calculated for pard D. (round the the nearest dollar