2. CVP analysis; break-even: K-9's Companions, Inc. operates a chain of pet supply stores that carry many styles of dog toys that are all sold at the same price. The following data pertains to K-9's Companions and is typical of the company's many outlets: Per dog toy: Selling price: $15.00 Variable costs: Variable Manufacturing costs (DM, DL, VarOH) $2.50 Variable selling and administrative $0.75 Fixed costs: Administrative salaries Rent Depreciation Advertising Per month: $15,820 $1,450 $720 $2,495 a. c. What is K-9's Companions monthly break-even point in unit sales? Round your unit sales answer up to the nearest whole unit. b. If 1,600 dog toys are sold in a month, what would be K-9's Companion's monthly net operating income (loss)? You must show all of your work. If 2,000 dog toys are sold in a month, what would be K-9's Companion's monthly net operating income (loss)? You must show all of your work. d. Suppose the current sales volume is 1,600 dog toys per month. The firm's manager is planning to increase advertising costs by $500 per month. This is expected to reduce variable selling costs by $0.10 per dog toy and increase sales volume by 200 dog toys per month (i.e. from 1,600 to 1,800 toys). i. What would be the effect of these changes on the number of units needed to break even? You must show all of your work. ii. What would be the effect of these changes on current net income per month? You must show all of your work. iii. Based on your answers, should the firm make this change? Why or why not? Briefly explain your