I mainly need help with question A-E
Problem 634 points) Tracey Incorporated has been only product. The company's contribution format income statement for the most recent month is given below experiencing difficulty for some time due to erratic sales of its Total $585,000 409,500 175,500 180,000 ($4,500) Per Unit Percent of Sales Sales (19,500 units) Variable expenses Contribution margin Fixed expenses Net operating loss 1. Complete the table above with the per unit information and the percent of sales The president believes that a $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80,000 increase in monthly sales. If the president is right, what will be the effect on the company's monthly net operating income or loss? 2. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $60,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? Should the changes be adopted? 3. Per Unit Percent of Sales Total Sales Variable expenses Contribution margin Fixed expenses Net operating income Refer to the original data. The Marketing Department thinks that a fancy new package for the product cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $9,750? 4. would help sales. The new package would increase packaging costs by 75 Refer to the original data. By automating, the company could reduce variable expense by $3 per unit. However, fixed expenses would increase by $72,000 each month. Assuming that the company expects to sell 26,000 units next month, prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are 5. NOT AUTOMATED Total Per Unit Percent of Sales Sales (26,000 units) Variable expenses Contribution margin Fixed expenses Net operating income AUTOMATED Total Per Unit Percent of Sales Sales (26,000 units) Variable expenses Contribution margin Fixed expenses Net operating income