I need the solution and explanation

Stratford Company distributes a lightweight lawn chair that sells for $32 per unit. Variable expenses are $16 per unit, and fixed expenses total $200,000 annually. Results for last year are as follows:

Sales (30,000 units)$960,000Variable expenses480,000

Contribution margin480,000Fixed expenses200,000

Operating income$280,000

Required:1.Calculate the company's CM ratio and its break-even point in sales dollars and in units.

2.If sales increase by $62,000 during the coming year due to increased demand, by how much should operating income increase? Use the incremental approach in preparing your answer.

3-a.Refer to the original data. The sales vice-president is convinced that a 20% decrease in the selling price, combined with a $270,000 increase in marketing expenditures, would increase annual unit sales by 75%. Prepare a new contribution format income statement assuming these changes occur.(Round "Per Unit" answers to 2 decimal places.)

3-b.Should the company proceed with the changes?YesNo

4.Refer to the original data. The president feels that it would be unwise to change the selling price. Instead, she wants to increase the sales commission by $6 per unit. She thinks that this move, combined with some increase in advertising, would increase sales to 60,000 units compared to 30,000 last year. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach.