TMP Human Resource Consulting had the following contribution margin income statement for the year ended 2025.

Required
Answer each of the following independent situations.
(a) Explain how an understanding of CVP analysis would improve the performance of the manager of a human resource consulting firm like TMP Human Resources Consulting.
(b) As a graduate of a human resource management course you have finally become the manager of TMP Human Resource Consulting. In setting your salary at \($500\) 000, you need to calculate what the service fees need to increase by to maintain the company’s profit equal to at least 25% of total service fees.
(c) The marketing manager believes that by increasing variable expenses by \($1\) 200 per client and fixed advertising expenses by \($300\) 000 the firm will increase the number of clients by 100 per year. Would this suggestion improve profitability? Explain why or why not.

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Employment services fees (1500 employed) Variable expenses Contribution margin Fixed expenses Profit $36000 000 14 400 000 21 600 000 12 240 000 $ 9360000