17 CVP: What-if analysis Lo1,2,3 Hacker Aggregates mines and distributes various types of rocks. Most of the company's rock is sold to contractors who use the product in highway construction projects. Treva Hacker, company CEO, believes that the company needs to advertise to increase sales. She has proposed a plan to the other managers that Hacker Aggregates spend $100000 on a targeted advertising campaign. The company currently sells 25000 tonnes of aggregate for total revenue of $5 000000. Other data related to the company's production and operational costs follow: Direct labour Variable production overhead Fixed production overhead Selling and administrative expenses $1500000 200000 350000 Variable 50000 Fixed 300000 Required Compute the break-even point in units (.e. tonnes) for Hacker Aggregates Compute the contribution margin ratio for Hacker Aggregates If Treva decides to spend $100 000 on advertising and the company expects the advertising to increase sales by $200000, should the company increase the advertising? Why or why not? a b c