7) Give one example of how Morrisey and Brown could increase projected operating income without increasing total sale revenue.

8) Morrisey and Brown are considering a multimedia advertising campaign that should increase sales by $25,000 per month. The ad campaign will cost an additional $7,500 per month and will be considered a fixed cost. How will the ad campaign affect product cost? How will the increase in fixed costs affect the break-even point? Explain.

Please answer both #7 and #8!

Some of my work:

ihe company's income statement for the three most recent months is listed below Morrisey and Brown Income Statement For the Three Months Ending September ember Ju 4,000 August 4,500 Sales in Units 5,000 $500,000 175,000 14,000 Sales Revenue $400,000 $450,000 135,000 155,000 Gross Margin Selling and Administrative Expenses: Administrative Ex Shipping Expense Salaries and Commissions Insurance Expense Depreclation Expense Total Selling & Administrative Expenses Operating Income 14,000 22,500 84,000 6,000 14,000 20,000 6,000 133,000 25,000 150,000 $25,000 141,500