XYZ Inc. had the following results last month regarding their premium product, lets call it Product ZZ

They sold 1250 units in that month. Sale price per Unit = 25$ VC per unit= 10$ FC that month= $11,500

Required:

Calculate their Contribution Margin (CM) per unit

Calculate their total CM for the month.

Calculate NI for the month

What if they decide to increase the marketing expenses by $6000

thinking that they can increase sales units of product ZZ by 20%? Is that a good idea or not? Give details both quantitative and qualitative.

What about if this time they decide to increase the Variable Cost per unit by 2.5$ thinking that the higher quality will lead to higher sale of product ZZ by 26%. Do you suggest they do that? Provide your detailed analysis both quantitatively and qualitatively.

What about if they decrease the sale price by 10% and incurred additional 10,000$ of advertising expenses hoping they will increase their sale units of product ZZ by 36%. Do you suggest they do that? Give detailed analysis both quantitatively and qualitatively.

Among the options above, which one is the best option according to you that the company needs to stick with as their final chosen option. Explain your logic in detail. Provide quantitative and qualitative calculations to justify your answer.