Required:

A. Compute the company's per-unit contribution margin.

B. Compute the company's break-even point in units.

C. What is the safety margin in units?

D. How many total units must company sell to produce a target net profit of $70,000?

E. The sales manager believes the company could increase sales by 5,000 units if advertising expenditures were increased by $30,000. Determine the dollar effect on income if the company increases advertising expenditures. Would you recommend this advertising campaign? Why?