Please answer question $6,1-5$ are already answered and correct and information is provided so I just need question $6$ answered. Thanks.

Moncton Company distributes a lightweight lawn umbrella that sells for $$30$ per unit. Variable expenses

are $40\%$ of sales, and fixed expenses total $$313,200$ annually.

Required:

Answer the following independent questions:

What is the product's CM per unit?

Use the $CM$ per unit to determine the break$-$even point in units.

Answer is complete and correct.

Answer is complete and correct.

The company estimates that sales will increase by $$50,000$ during the coming year due to increased demand. By how much should

net operating income increase?

Answer is complete and correct.

Assume that the operating results for last year were as follows:

a$.$ Compute the degree of operating leverage at the current level of sales. $($Round your answer to $1$ decimal place.$)$

Answer is complete and correct.

Degree of operating leverage

b$.$ The president expects sales to increase by $30\%$ next year. By how much should net operating income increase?

Answer is complete and correct.

$5-$a$.$ Refer to the original data. Assume that the company sold $31,000$ units last year. The sales manager is convinced that a $10\%$

reduction in the selling price, combined with a $$80,000$ increase in advertising expenditures, would increase annual unit sales by $40\%.$

Prepare two contribution format income statements: one showing the results of last year's operations, and one showing what the

results of operations would be if these changes were made. $($Do not round intermediate calculations. Round "Per Unit" answers to $2$

decimal places.$)$

Answer is complete and correct.

Refer to the original data. Assume again that the company sold $31,000$ units last year. The president feels that it would be unwise to

change the selling price. Instead, she wants to increase the sales commission by $$3$ per unit. She thinks that this move, combined with

some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining

unchanged? Do not prepare an income statement; use the incremental analysis approach.

Answer is not complete.