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Below is data for Company XYZ. Assume that the relevant range of activity is 1 to 1,000 units. The sales activity for Company XYZ for

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Below is data for Company XYZ. Assume that the relevant range of activity is 1 to 1,000 units. The sales activity for Company XYZ for January and Feburary are provided below: What is the amount of contribution per unit? What is the contribution margin ratio? Using the contrinution margin ratio? Using the contribution margin ratio? Using the contrinution margin per unit, compute the break-even point in units. Prepare an income statement. What was the margin of safety in January? In February? Under the current cost structure, how many televisions must they sell to make a before-tax profit of $75,000? Perpare an income statement. Company XYZ is projecting data for March activities. They are considering three different plans. They could increase the amount that they spend on advertising by $8,000. They do not plan to change the selling price per unit. If this plan is implemented, they estimate that sales volume will increase by 15 units. They could decrease the selling price by 5% and increase the spending for advertising by $10,000. If this plan is implemented, they estimate that sales volume will increase by 50 units. They could increase advertising expense by $30,000 and increase the selling price by 10%. If this plan is implemented, they estimae that sales volume will decrease by 25 units. Evaluate the above plans by preparing comparative income statements for the three alternatives under consideration. Determine the break-even point for each alternative. Which of the three would you recommend? Why

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