Due to the sluggish economy ,the Bi—Wheels Company has experienced some dif?culty in selling its bicycles

Due to the sluggish economy ,the Bi—Wheels Company has experienced some dif?culty in selling its bicycles .The following data relate to the current year: Sales [9,000 units @ $100 {unit} $ 900,000 Less variable costs (9,000 @ $60 lunit) 540,000 Contribution margin $ 360,000 Less fixed costs 400,000 Net operating loss ($40,000 ) Required 1. Compute Bi iwheels 'annual breakeven point , in both units and dollars .Also , compute the contribution margin ratio. 2.The manager believes that a $40,000 increase in advertising would result in a$120,000 increase in annual sales . If the manager is right ,what will be the net effect on the company's operating income [TEE]? 3. Refer to the original data .The vice —president in charge of sales is certain that a 10% reduction in selling price in combination with a $30,000 increase in advertising will cause sales volume to increases by 50%.What effect would this strategy have on operating