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: $$1,920,000$

Less: variable expenses: $1,184,000$

Contribution margin $736,000$

Less: fixed expenses: $300,000$

Operating Income: $$436,000$

Required:

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$)$

Calculate the contribution margin ratio $($round to two decimal places$)$ and the break$-$even sales revenue $($round to the nearest dollar$)$

What is the current margin of safety both in terms of number of units and in terms of sales dollars?

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?($round to the nearest dollar$)$

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?