1) Green Beans Corporation currently has a sales price of $2.00 per can of organic green beans with a variable cost of $0.75 per can. The company currently sells50,000 cans a month and hopes that increased advertising of $3,000 will increase its sales by 5,000 cans. The company currently has $20,000 in fixed costs per month. How will this change affect its breakeven point in terms of cans?

A. The company will have to sell 2,600 more cans to breakeven.

B. The company will have to sell 18,400 more cans to breakeven.

C. The company will have to sell 5,000 more cans to breakeven.

D. The company will have to sell 2,400 more cans to breakeven.

2) Breakeven in sales dollars and units can be calculated for multiple product companies. When performing this process the starting point is determining...

A. Breakeven in sales dollars and units cannot be determined when you have more than one product

B. the sales mix and applying it to the individual contribution margins

C. the individual contribution margin per unit for each product

D. the weighted average contribution margin per unit for each product