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AC6550 SP20 B Homework: LP5 Problem Set Save Score: 0 of 10 pts 2 of 5 (0 complete) HW Score: 0% 0 of 50 pts

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AC6550 SP20 B Homework: LP5 Problem Set Save Score: 0 of 10 pts 2 of 5 (0 complete) HW Score: 0% 0 of 50 pts P10-65 (similar to) 3 Question Help The following information pertains to Trudell Company's budgeted income statement for the month of June 2011 (Click the icon to view the budgeted income statement) Requirements (a) Determine the company's breakeven point in both units and dollars. (b) The sales manager believes that a $19,800 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased advertising in order to break even on the monthly expenditure? (c) The sales manager believes that an advertising expenditure increase of $19,800 coupled with a 15% reduction in the selling price will double the sales quantity. Determine the net income (or loss) if these proposed changes are adopted. Requirement (a) Determine the company's breakeven point in both units and dollars. Begin with the breakeven units. First determine the formula, then calculate the breakeven point in units. Breakeven units Data Table - X Sales (1,800 units @ $220) $ 396.000 198,000 Variable cost Choose from any lis Contribution margin $ 198,000 220,000 Fixed cost 3 parts | Ver remaining Net loss (22,000)

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