4C & 5 please
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ 13.50 14.50 6.00 34.00 $ Variable costs per ice cream maker Direct labor Direct materials Variable overhead Total variable costs Fixed costs Manufacturing Selling Administrative Total fixed costs Selling price per unit Expected sales (units) $ 82,500 42.000 356,000 $480,500 $ 67.00 30,000 Required: 1. If the costs and sales price remain the same, what is the projected operating profit for the coming year? 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 35,000 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $200,000 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $200,000 is spent on advertising and sales rise to 35,000 units? 4-a. What will be the new breakeven point if the additional $200,000 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $200,000 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year's operating profit at 30,000 units? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req2 Req3 Reg 3 Rega Reg 4A RegaB Reg 4B Ranc R19 4C Reg 5 Reas What is the percentage change in both fixed costs and in the breakeven point? (Input your answers as percentages rounded to 2 decimal places (.e., .1567 = 15.67%.).) Percentage change in fixed cost Percentage change in breakeven point entago change in troskoven point A Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req3 Req 4A Rega Req 4B RegaB Regac | Reis | Req 4C Ren 5 If the additional $200,000 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year's operating profit at 30,000 units? (Round your answer up to the nearest whole number) Sales level units