1. Harber Go Karts, Inc. shows the following quarterly data relating to its line of Go Karts the first quarter of 2017, for sales of 500 units:

Sales	$ 500,000
Variable Expenses	300,000
Contribution Margin	200,000
Fixed Expenses	120,000
Net Operating Income	$ 80,000

a. Should Harber Go Karts, Inc. increase its variable expenses per unit by $50 and increase its advertising budget by $20,000 in order to increase unit sales by 30%?

b. Should Harber Go Karts, Inc. increase the price of its Go Karts by $200 if it would result in a decrease in unit sales by 10%?

c. Should Harber Go Karts, Inc. shift from paying its sales staff sales commissions of $40 per unit to fixed salaries totaling $10,000 per quarter if such a change would result in a decrease in unit sales of 5%?