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Acc2020-Ch20-Lecture Examples-Students-Fall2018(2) ces Mailings Review View Normal No Spacing Heading 1 Acoustic Concepts company manufactures and sells a specialized speaker. The company's contribution format income statement for the most recent month is given below Contribution Income Statement For the Month of June Per Unit 250 Sales (400 $100,oo0 40,000 --35.000 1 50 $100 1. Compute the company's contribution margin and CM ratio 2. Compute the company's break-even point in both unit sales and dollar sales. 3. What total sales revenue is required to earn an operating 4. Change in Fixed Cost and Sales Volume: incdme of $40,000 per month? The sales manager feels that a $10,000 increase in the monthly advertising budget would increase monthly sales by $30,000 to a total of 520 units. Should the advertising budget be increased? Change in Variable Costs and Sales Volume: Refer to the original data. The company is considering the use of higher-quality components, margin) by S10 per speaker. However, the sales manager predicts that using higher- quality components would increase sales to 480 speakers per month. Should the higher- quality components be used? 5. which would increase variable costs (and thereby reduce the contribution Change in Variable Cost, Fixed Cost, and Sales Volume Refer to Acoustic Concepts' original data. The sales manager would like to pay salespersons a sales commission of $15 per speaker sold, rather than the flat salaries that now total S6,000 per month. The sales manager is confident that the change would increase monthly sales by 15% to 460 speakers per month. Should the change be made? 6. 44 11 F8 F9 20 FS F3