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4. Jenner Company's most recent contribution format income statement is presented below. Sales $ 125,000 Less variable expenses 50,000 Contribution margin 75,000 Less foxed expenses
4. Jenner Company's most recent contribution format income statement is presented below. Sales $ 125,000 Less variable expenses 50,000 Contribution margin 75,000 Less foxed expenses 80,000 Net income (loss) $5.000) The company sells its only product, SAA, for $20 per unit. Required: a) Compute the number of units sold in the year b) Compute the variable cost per unit. b) Compute the company's break-even point in units sold and in sales dollars. c) How many units would have to be sold to earn a target profit of $10,600 before tax? What would be the total sales dollars at this volume of sales? d) The sales manager is convinced that an $8,000 increase in the advertising budget would increase total sales by 25%. Would you advise them to increase their advertising outlay? a) The production manager believes that the addition of an automated production line would decrease variable costs by $2 per unit. The annual faced cost for the new production line would be $18,000. What will be the new breakeven point in units sold, if the production line was acquired and variable costs decreased as predicted? Should they acquire the production line
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