7.) L&M Manufacturing produces a single product that sells for $16. Variable (flexible) costs per unit equal $11.20. The company expects the total fixed (capacity minus?related) costs to be $7,200 for the next month at the projected sales level of 20,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.

What is the current break minus?even point in terms of number of units for the next month?

A. 1,500 units

B. 2,250 units

C. 3,333 units

D. None of the above is correct.

26.) Suppose that L&M Manufacturing's management believes that a $1,600 increase in the monthly advertising expense will result in a considerable increase in sales. How much must sales increase in a month to justify this additional expenditure?

A. 334 units

B. 200 units

C. 500 units

D. None of the above is correct.

7.) L&M Manufacturing produces a single product that sells for $16. Variable (flexible) costs per unit equal $11.20. The company expects the total fixed (capacity minusrelated) costs to be $7,200 for the next month at the projected sales level of 20,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current break minuseven point in terms of number of units for the next month? A. 1,500 units B. 2,250 units C. 3,333 units D. None of the above is correct. 26.) Suppose that L&M Manufacturing's management believes that a $1,600 increase in the monthly advertising expense will result in a considerable increase in sales. How much must sales increase in a month to justify this additional expenditure? A. 334 units B. 200 units C. 500 units D. None of the above is correct