The following monthly data in contribution format are available for the Friends Company and its only product, Product SD:

||Particulars||Amount

|Sales|$90,000

|Variable expenses|$45,000

|Contribution margin|$45,000

|Fixed expenses|$30,000

|Net operating income|$15,000

The company product and sold 300 units during the month and had no beginning or ending inventories.

Required:

a. Assume that MN Company is currently selling 300 units of Product SD. Management is planning to make $60,000 as a net profit. How many units should produce and sold?

b. Assume that MN Company is currently selling 300 units of Product SD per month. Management wants to increase sales and feels this can be done by cutting the selling price by $10 per unit and increasing the advertising budgets by $15,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made?

Please do not copy from chegg otherwise i have to report the answer. Explain the answer throughly with showing each step of the calculation.