12 pts XCODE um with other students is a violation of these standards and will result in referral for disciplinary action Question 1 The following monthly data in contribution format are available for the MN Company and its only product, Product SD: Sales 209,000 Less manufacturing costs: Direct Materials 42,750 Direct Labor 47,500 Variable Factory Overhead 26,600 Fixed Factory Overhead 31,500 148,350 Gross Margin 60,650 Less selling and other expenses Variable Selling Expenses 11,400 Fixed Selling Expenses 38,000 49,400 Net Operating Income 11,250 The company produced and sold 9,500 units during the month and had no beginning or ending inventories. a. Management wants to increase sales and feels this can be done by improving the quality of the product with better materials. The selling price will not be changed, but the materials cost per unit will rise by $1.70 per unit and increasing the advertising budget will be increased by $8,500 per month. Management believes that these actions will increase unit sales volume by 35 percent. What will be the total net operating income if the change is made? b. Based on the original data above, management is considering investing in automation. This investment would decrease direct labor by 30%, but increase fixed factory overhead by 40%. If this investment is made, what would be the new break-even point in units of sales? B / VAA. I. E X11 X XEE Paragraph