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vogel Co produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model Selling price per wit
vogel Co produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model Selling price per wit 20 3V19 12 NV41 $ HV12 10 Contribution margin per wit 6 Maits sold per anth 3.500 1.600 5,000 Tatal contribution in $10,500 $9,000 $10.000 Dieset fixed expenses 5,000 Strin $5,200 3.800 $5,200 6.200 $3,000 Allocated cosy any fixed expense 3,050 Operating inces (less) $1,350 1,050 $3,550 5.600 $ (1,700) Required: a. On what basis does the $11,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $16,000 in revenues, which model should be advertised?
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