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Question Three Sales (25,000 units)... Variable Expense. Contribution Margin. Fixed Expenses. Net Operating Income.. Refer to the original Data Amount $750,000 600.000 150,000 20,000 $60,000

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Question Three Sales (25,000 units)... Variable Expense. Contribution Margin. Fixed Expenses. Net Operating Income.. Refer to the original Data Amount $750,000 600.000 150,000 20,000 $60,000 (15 marks) a. Consider the following suggested changes for next month and prepare a new CM format Income Statement: Total FC increased by 10% Price increased by $2 Volume increased by 3,000 units VC per unit increased by 5%. b. Would this be a good suggestion? Explain (1 mark) c. Why is Break Even Point always equal to zero? (2 marks)

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