i. ii. iii. iv. Refer to the original data. The president believes that a $16,000 increase in the advertising budget would result in a 3,000 increase in monthly sales units. If the president is right, what would be the effect on the company's net income or loss? Refer to the original data. The Marketing Department thinks improved packaging would help sales. The new package would increase packaging costs by $0.75 per unit. Prepare a contribution statement to show the net income if sales increased by 3,000 units Refer to the original data. By automating certain operations, the company could reduce variable production costs by 25%. However, fixed costs would increase by $72,000 each month. The company expects to sell 26,000 units in the coming month. Prepare two contribution statements, one assuming operations are automated, and one assuming that operations are not automated. Using your response to part (iii) above, would you recommend the company automate its operations?