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Question 4 (9 points) Blue Company sells a product for $50 each and the variable cost is $20 per unit. The monthly fixed expense
Question 4 (9 points) Blue Company sells a product for $50 each and the variable cost is $20 per unit. The monthly fixed expense is $800. Required: 1. Calculate the company's contribution margin ratio. (2 marks) 2. Calculate the company's operating income if they sell 100 units next month. (3 marks) 3. Calculate the change to operating income if the company increases advertising by $200 in order to increase sales by 30 units. Is the change in operating income an increase or a decrease? (4 marks) Paragraph V B I UA +v
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