13 - A A Aa A X X A- D . A Normal 1= No Spacing Head Font Paragraph Styles t 3 months of Microsoft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Redeem Sales growth at Bubba's has been great. Because of the rapid growth in sales, Bubba finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. Provided below is some of the pertinent information on the Sales price $80.00 Per unit variable expenses Purchase cost 27.50 Sales commissions 27.50 Total per unit variable costs $55.00 Total annual fixed expenses Advertising $257.500 Rent 228,000 Salaries 360,500 anadal Accessibility: Good to go D, Fo [ X W hp 144nd Q2 . Saved to this PC v Search (Alt+0) References Mailings Review View Help A" A Aa - Po A - D - A Normal No Spacing Headi Paragraph Styles of Microsoft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Redeem REQUIRED: (approximate time needed to complete this question 30 minutes) 1. If the costs and sales price remain the same, what is the projected operating profit for the coming year? (3 marks) 2. What is the contribution margin ratio? (1 marks) 3. What is the breakeven point in units and dollars for the coming year? (4 marks) 4. The sales target are for 45,400 ice cream makers, which the president thinks can be achieved by an additional $234,165 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $234,165 is spent on advertising and sales rise to 45,400 units? (5 marks) DFO Accessibility: Good to go W Oed to this PC v Search (Alt+0) ces Mailings Review View Help Aa Po Normal No Spacing HE A Paragraph Styles soft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Red 5. What will be the new breakeven point in units and dollars if the additiona $234,165 is spent on advertising? (5 marks) Accessibility: Good to go x w hpout References Mailings Review View Help A" A Aa Po E. X A . L . A . = Normal No Spacing Paragraph Styles onths of Microsoft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales. Because her business has grown the president believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Variable costs per ice cream maker Direct labor $15.00 Direct materials 18.50 Variable overhead 7.50 Total variable costs $41.00 Fixed costs Manufacturing $95,500 ng 55.500 Administrative 548 000 17 Accessibility Good to go hp13 ~ A" A Aa Ap Normal No Spacing Head Font Paragraph Styles $1, get 3 months of Microsoft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Redeem Total variable costs $41.00 Fixed costs Manufacturing $95,500 Selling 55,500 Administrative 548,000 Total fixed costs $699,000 Selling price per unit $75 Expected sales (units) 41.000 REQUIRED: (approximate time needed to complete this question 30 minutes) 1. If the costs and sales price remain the same, what is the projected operating profit for the coming year? (3 marks) 2. What is the contribution margin ratio? (1 marks) 3. What is the breakeven point in units and dollars for the coming year? (4 marks) 4 The sales target are for 45 400 ice cream makers which the president D Focus glish (Canada] Accessibility: Good to go O X W hp ... . 19 144 & % 8 3 4 5gn Layout References Mailings Review View Help - 13 ~ A" A Aa Normal No Spacing 3b X x A - D- A - Heading Font Paragraph Styles , get 3 months of Microsoft 365 Family and share with up to 5 people. It is like getting six subscriptions in one. TERMS APPLY. Redeem now Salaries 360,500 Total fixed expenses $846,000 REQUIRED: (approximate time needed to complete this question 30 minutes) 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. (5 marks) 2. If Bubba's sells 35,000 hats, what is its profit or loss? Support your answer by preparing a contribution income statement. (5 marks) 3. Bubba is considering the elimination of sales commissions completely and increasing salaries by an additional $309,000 annually. What would be the new breakeven point in units if the change is made? (3 marks) 4. What would be the profit or loss if 35,000 hats are sold with the new salary plan? (5 marks) Canada) 1 Accessibility: Good to go Focus O X W hp 149