caspian industrial solvents produces industrial solvents. the budget income statement using the contribution margin approach is as follows

Problem #13. Caspian Industrial Solvents produ using the contribution margin approach is as follows: sthal Solvents produces industrial solvents. The budgeted income statement Sales (137,000 units @ $50 each) $6,850,000 Less: Variable costs 3,425,000 Contribution margin 3,425,000 Less: Fixed costs 3,000,000 Operating income $425,000 5 extra points 1.) Calculate the break-even point in $ and units. 100K @example arond 237 2.) The owner is considering an increase in advertising by $100,000 and cutting the selling price to 545 - variable costs per unit will remain the same. Expectations are that sales will increase by 20,000 units. Good decision or not? What if the advertising generated an additional 40,000 units, now is it a good decision, or not? 3. Go back to the original data, and now Caspian is considering purchasing robotic equipment that will by increase fixed costs to $4,200,000 per year, but reduce variable costs to 35% of sales (less overtime, less waste, etc.). Good decision or not and WHY? AND WHAT WOULD BE THE "INDIFFERENCE POINT" OF THESE TWO SCENARIOS? What Sales level - be take VCV be your replacing it will FC