I.Unitech, Inc. manufactures computers.Over the past year the company sold 800 computers, with the following operating results:(30 pts.)

TotalPer Unit

Sales(800 computers)$240,000$300

Less variable expenses200,000250

Contribution margin40,000$50

Less fixed 25,000

Net income$15,000

1. Compute:(a) the CM ratio; (b) the break-even point in number of computers; and (c) the break-even point in $ sales.
2. Compute the margin ofsafety.
3. Due to an increase in labor rates, the company estimates that variable costs will increase by $25 per computer next year.If this change takes place; and Unitech increases the selling price per to $330, what will be:(a) the new CM ratio;(b) the new break-even point in number of computers?;and(c) the net income.
4. Refer to the original data.The company is considering the construction of a new, automated plant to manufacture the computers. The new plant would cut variable expenses per unit by 50%, but it would cause fixed costs to increase by 80%.If the new plant is built, what would be the company's:(a) new CM ratio; (b) new break-even point in number of computers;and (c) new net income?