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ABC Company manufactures and sells a single product. The company s contribution income statement for 2016 is given below: To increase sales of the Company's

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ABC Company manufactures and sells a single product. The company s contribution income statement for 2016 is given below: To increase sales of the Company's product, the sales manager is considering cutting the sales price per unit by 8% and increase advertising by 15,000. The sales manager believes that if these two steps are taken, sales in units will increase by 50%. a) Assuming that changes are made as described above, prepare a projected contribution format income statement for 2017. Show data on a total, per unit and percent of sales basis. b) Compute the company's new breakeven point in units and in cedis c) Would you recommend that the changes be made? Justify you

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