Sales (400 units Total Per Unit $120.000 $300 Variable expenses Contribution margin Fored expenses 44.000 110 576,000 $1901 Net income $2.000 $.23.200 Required aj Compute GB Enterprise's break even point in sales dollars and units. by What is the local contribution margin at the break-even point? Management is contemplating the use of plastic gearing rather than metal gearing in Gadget One. This change would reduce variable costs by $15. The company's marketing manager predicts that this would reduce the overall quality of the product and thus would result in a decline in sales to a level of 350 units per month. Should this change be made? Assume that GB Enterprises Company is currently selling 400 units of Gadget one per month Management wants to increase sales and feels that this can be done by cutting the selling price by 525 per unit and increasing the advertising budget by 520.000 per month Management believes that these actions will increase unit sales by SON Should these changes be made! e) Assume that G Enterprises is currently selling 400 units of Gadget One Management wants to automate a portion of the production process for Gadget One. The new equipment would reduce direct labour costs by 520 per unit but would result in a monthly rental cost for the new robotic equipment of $10,000 Management believes that the new equipment will increase the reliability of Gadget One, thus resulting in an increase in monthly sales of 12%. Should these changes be made? TTTA