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1. If the costs and sales price remain the same, what is the projected operating income for the coming year? AS 385,000 B. $ 415,000

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1. If the costs and sales price remain the same, what is the projected operating income for the coming year? AS 385,000 B. $ 415,000 CS 354,000 DS 515,000 ES 409,000 2. What is the break-even point in sales dollars for the coming year? A $ 785,000 B.$ 1,030,000 c.$ 980,000 D$ 895,000 ES 1,225,000 3. Jan has set the sales target for 35,000 headphones which she thinks she can achieve by an additional fixed selling expense of $400,000 for advertising. All other costs and the selling price remain the same. What will be the operating income if the additional $400,000 is spent on advertising? A. S 415,000 B. $ 335,000 C. $ 224,500 D. $ 275,000 E. $ 446,000 4. What will be the new breakeven point if an additional $400,000 is spent for advertising and the Sales price goes up to $75 per set of headphones? All other costs remain the same. A 22,250 units B. 15,960 units c. 18,750 units D. 20,960 units E. 25,500 units The following data is used for questions 1-5. Martin, Inc., is a manufacturer of quality headphones. The President believes she needs an aggressive advertising campaign next year to maintain the company's growing profitability. The accountant for the company has prepared the following information for the current year: Selling price per headphone $70.00 Variable costs per headphone: Direct labor $15.00 Direct materials 14.00 Variable overhead 6.00 Total variable costs $35.00 Fixed Costs: Manufacturing Selling Administrative Total fixed costs $90,000 44,000 356,000 $490,000 Expected sales (units) this year 25,000 headphones

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