ComputerGuard offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $328,100, as follows: 

Required 

a. Linda O’Flaherty, the owner of ComputerGuard, believes that in the coming year, she can increase sales by 15 percent. Assuming the current mix of services, what will be the percentage increase in profit associated with a 15 percent increase in sales? Why will profit increase at a greater percent than sales? Round the contribution margin ratio to six decimal places, and increased profit to the nearest dollar. 

b. If Linda were to focus on the contribution margin per unit (rather than the contribution margin ratio), what would be a likely unit of service?

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Consulting Training Repair Total Sales $600,000 $525,000 $375,000 $1,500,000 Less variable costs: Salaries 300,000 210,000 225,000 735,000 Supplies/parts 24,000 39,000 75,000 138,000 Other 1,200 2,700 5,000 8,900 Contribution margin $274,800 $273,300 $ 70,000 618,100 Less common fixed costs: Rent 55,000 Owner's salary 212,000 Utilities 13,000 Other 10,000 Profit $ 328,100