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Wilson Entrepreneur Services, Inc is a legal services firm that files necessary paperwork and documentation for businesses to incorporate. Wilson charges $ 1 , 2

Wilson Entrepreneur Services, Inc is a legal services firm that files necessary paperwork and documentation for businesses to incorporate. Wilson charges $1,200 for the incorporation application package and plans to file 1,600 applications in 2024. The company's projected income statement for 2024 is:
Sales:
Less: variable expenses:
Contribution margin
Less: fixed expenses:
Operating Income:
[$1,920,000],[1,184,000],[736,000],[300,000],[$436,000]
Required:
a) Compute the contribution margin per application and calculate the break-even point in number of applications (round to the nearest whole unit, since it is not possible to file a partial application)
b) Calculate the contribution margin ratio (round to two decimal places) and the break-even sales revenue (round to the nearest dollar)
c) What is the current margin of safety both in terms of number of units and in terms of sales dollars?
d) If Wilson wants to have an operating income of $500,000 in 2024, how many applications must it process? (round to the nearest whole unit) What dollar level of sales is required to achieve operating income of $500,000?(round to the nearest dollar)
e) The Finance Director for Wilson has proposed that Wilson increase advertising (a fixed cost) for 2024 by $75,000 hoping this will increase sales in 2024 by an additional $300,000 over the projected sales figure of $1,920,000. Prepare a revised projected income statement for this proposal. Should Wilson spend the additional $75,000 based on the revised projected income statement?
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