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4 A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50
4 A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin Fixed costs. Income $ 432,000 345,600 86,400 64,800 $ 21,600 The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Complete this question by entering your answers in the tabs below. Required A Required B Compute the break-even point in sales dollars if the company increases advertising costs by $16,200. Break-even point $ 324,000 4 A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin Fixed costs Income $ 432,000 345,600 86,400 64,800 $ 21,600 The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution margin income statement assuming the company incurs the additional advertising costs and sales volume increases to 22,000 units. Contribution Margin Income Statement For Year Ended December 31 Sales $ 356,400,000 Variable costs Contribution margin 356,400,000 Fixed costs Income $ 356,400,000
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