1) Traxon Products distributes a single product whose selling price is $8 and whose variable cost is $6 per unit. The company's monthly fixed expense is $5,500. a. Solve for the company's break-even point in units using the formula method. b. Solve for the company's break-even point in sales dollars using the formula method. 2) Lyman Corporation has a single product whose selling price is $140 and whose variable expense is $60 per unit. The company's monthly fixed expense is $40,000. a. Using the formula method, solve for the unit sales that are required to earn a target profit of $8,000. b. Using the formula method, solve for the dollar sales that are required to earn a target profit of $8,000. 3) Herron Corporation data is as follows: Selling price is $75 per unit: Variable expenses are $45 per unit (60% of sales); and contribution margin is $30 per unit (40% of sales). Fixed expenses are $75,000 per month and the company is selling 3,000 units per month a. The marketing manager believes that an $8,000 increase in the monthly advertising budget would increase monthly sales by $15,000. Should the advertising budget be increased? 1