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15 of 18 (11 complete) HW Score: 46.25%, 23.12 of 50 pts Score: 0 of 3 pts P10-65 (similar to) Question Help The following information
15 of 18 (11 complete) HW Score: 46.25%, 23.12 of 50 pts Score: 0 of 3 pts P10-65 (similar to) Question Help The following information pertains to Torasic Company's budgeted income statement for the month of June 2011: PE (Click the icon to view the budgeted income statement.) Requirements (a) Determine the company's breakeven point in both units and dollars. (b) The sales manager believes that a $15,000 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased advertising in order to break even on the monthly expenditure? (c) The sales manager believes that an advertising expenditure increase of $15,000 coupled with a 5% reduction in the selling price will double the sales quantity. Determine the net income (or loss) if these proposed changes are adopted. Requirement (a) Determine the company's breakeven point in both units and dollars. Begin with the breakeven units. First determine the formula, then calculate the breakeven point in units. 0 Data Table = Breakeven units Sales (1,600 units @ $240) Variable cost Contribution margin 384,000 288,000 96,000 120,000 Fixed cost Net loss (24,000) Print Print Done Done Choose from any list or enter any number in the input fields and then click Check Answer. 3 parts Clear All Check Answer remaining
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