1. Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 75 50 % Contribution margin $ 75 50 % The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month. The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

2. Derst Inc. sells a particular textbook for $33. Variable expenses are $23 per book. At the current volume of 46,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

3.

Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $25,420 and variable expenses of $7,626. Product Y45E had sales of $30,030 and variable expenses of $18,018. The fixed expenses of the entire company were $19,000. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: