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13) Data concerning Kurek Corporation's single product appear below: Selling price. Variable expenses ....... Per Unit $180 126 Percent of Sales 100% 70% Fixed expenses

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13) Data concerning Kurek Corporation's single product appear below: Selling price. Variable expenses ....... Per Unit $180 126 Percent of Sales 100% 70% Fixed expenses are $190,000 per month. The company is currently selling 4,000 units per month. Required: a) What is amount of units that Kurek Corp must sell to break even? Show your work! b) The marketing manager would like to cut the selling price by $12 and increase the advertising budget by $11,100 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,500 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work! Refer to the original data. The production supervisor believes that increasing the quality of materials will increase demand for the product since it operates in a very competitive market. The production manager believes that increasing the cost of direct materials by $8/unit will increase unit sales by 20% with no change to fixed expenses. What should be the overall effect on the company's monthly net operating income of this change? Show your work

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