Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below Total Per Unit Percent of Sales Sales (20,000 units)....$1,200,000 $60 Variable expenses 100% 900,000 45 300,000 $15 240,000E 60,000 Management is aruous to increase the company's profit and has asked for an analysis of a number of items Required: 1. Compute the company's CM ratio and variable expense ratio. 2. Compute the company's break-even point in both unit sales and dollar sales remain unchanged, by how much will the company's net operating income increase? data. Assume that next year management wants the company to earm a profit of at least $90,000. How many units will have to be sold to meet this target profit? In an effoet to increase sales and profits, management is considering the use of a higher-quality speaker. The higher quality speaker would increase variable costs by $3 per unit, but management could eliminate one is paid a salary of $30,000 per year. The sales manager estimates that the higher-quality speaker would increase annual sales by at least 20% 5. quality inspector wbo a Assuming that changes are made as described above, prepare a projected contribution format income statement for next year. Show data on a total, per unit, and percentage basis b. Compute the company's new break-even point in both unit sales and dollar sales c, would you recommend that the changes be made? Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $85,000. Required: 1. What is the company's contribution margin (CM) ratio? 2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000