Question 3 Capital Budgeting Suggested time 20 minutes 10 Marks Dance Monkey distributes a high-quality microphone for Tik Tok videos. The microphone sells for $55 per unit. Variable costs are $22 per unit, and fixed costs total $510,000 annually. Required 1) What is the product's CM ratio? 2) What is the product's break-even point in sales dollars? 3) The company estimates that sales will increase by $550,000 during the coming year. By how much should operating income increase? 4) Assume the company sold 26,000 units last year. The president wants to increase the sales commission by $2 per unit. He thinks that this move, combined with some increase in advertising, would increase annual unit sales by 50%. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach