The Golden Company has experienced a steady growth in the past three years. The management of the company believes that an additional sales promotion program is necessary to maintain the company's present growth. The company's normal activity is 20,000 units per year. The following budgeted data have been prepared for the current year \(20 \mathrm{Xl}:\)

Required: (Assume unit selling price and cost behaviors remain the same in 20X2)
(1) Calculate the breakeven point in units for \(20 \mathrm{Xl}\).
(2) Determine the additional sales in dollars so that income in \(20 \times 2\) will equal 20X1's budgeted profit, if an additional \(\$ 15,000\) will be spent for the sales promotion in \(20 \times 2\).
(3) Determine the maximum amount that can be spent on the additional sales promotion in \(20 \mathrm{X} 2\) to generate an overall sales level of 30,000 units if a profit of \(\$ 280,000\) is desired.

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Unit variable cost....... Fixed costs: Factory overhead Marketing......... Administrative. Unit selling price.... .S 15 ........ 30,000 .40,000 .20,000 30 Budgeted sales and production......... 20,000 units