Problem $4\mathrm{.}13($LO$2,3)$ Excel Multiproduct, Contribution Margin Ratio ComputerGuard offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $$328,100,$ as follows:

$$

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$

Required

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.

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?