Techno Inc. shows the following information regarding one of its products for the month of January; The selling price is $250 per unit, the (COGS)variable expenses per unit is $100, and the total fixed expenses is $30,000. 300 units were sold during January.

a. Prepare a contribution format income statement for the month of January. (1pt)

b. Compute the breakeven point in units and in sales dollars (1 pt)

c. Compute the companys margin of safety in dollars and in percentage(1pt)

d. Management wants to increase sales and feels this can be done by increasing the advertising budget by $10,000 per month. Management believes that this action will increase the sales volume by 50 units. Will the companys net operating income increase? Should these changes be made? Show your work and explain (1pt)