Vogel Company produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model:

BV$19$ HV$41$ MV$12$

Selling price per unit $ $20$ $ $15$ $ $20$

Contribution margin per unit $462$

Units sold per month $7,3503,15010,500$

Total contribution margin $ $29,400$ $ $18,900$ $ $21,000$

Direct fixed expenses $16,60012,50013,800$

Segment margin $ $12,800$ $ $6,400$ $ $7,200$

Allocated company fixed expenses $7,7003,30011,000$

Operating income $($loss$)$ $ $5,100$ $ $3,100$ $ $(3,800)$

Required:

On what basis does the $$22,000$ of company fixed expenses appear to be allocated?

Calculate the effect on total company net income if the MV$12$ model were discontinued.

Calculate the contribution margin ratio for each model.

If an advertising campaign focusing on a single model were to result in an increase of $5,000$ units in the quantity of units sold, which model should be advertised?

If an advertising campaign focusing on a single model were to result in an increase of $$27,000$ in revenues, which model should be advertised?