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6. Sunnripe Company manufactures and sells two types of beach towels, standard and deluxe. Sunnripe expects the following operating results next year for each type

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6. Sunnripe Company manufactures and sells two types of beach towels, standard and deluxe. Sunnripe expects the following operating results next year for each type of towel: Standard Deluxe Sales $450,000 $50,000 Variable expenses (total) $360,000 $20,000 Sunnripe expects to have a total of $57,600 in fixed expenses next year. What is Sunnripe's break-even point next year in sales dollars? A) $72,000 B) $144,000 C) $192,000 D) $240,000 7. Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000? A) $16,000 Increase C) $24,000 Increase B) $5,000 Increase D) $11,000 Decrease 8. Birney Company has prepared the following budget data: Sales Selling price Variable expenses Fixed manufacturing expenses Fixed selling and admin. Expenses 150,000 units $25 per unit $15 per unit $800,000 $700,000 An advertising agency claims that an aggressive advertising campaign would enable the company to increase its unit sales by 20%. What is the maximum amount that the company can pay for advertising and obtain a net operating income of $200,000? A) $100,000 B) $200,000 C) $300,000 D) $550,000

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