Heli Manufacturing produces headphones and has been suffering from heightened competition. The following tables highlights the results of Helis operations for 2019:

Sales (12500 units @ $84)	$ 1 050 000
Variable (12 500 @ $63)	787 500
Contribution Margin	$ 262 500
Fixed Costs	296 100
Operating Profit (loss)	($ 33 600)

1. Compute Helis breakeven point in both units and dollars.
2. Compute the contribution margin ratio.
3. What will be the required sales, in both units and dollars, to generate a pre-tax profit of $30 000.
4. Prepare a contribution margin income statement for sales of 16,481 units.

Refer to the original data. The Vice President, Marketing feels that a 10% reduction in price, in combination with a $40 000 increase in advertising will cause sales to increase by 25%. What effect would this strategy have on operating profit (loss)?