Connelly, Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Since her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the companys growth. To prepare for the growth, the accountant prepared the following data for the current year:

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NOTE: I only need help on #4-C, & #5. The rest of the problem is complete.

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Variable costs per ice cream maker
Direct labor	$ 12.00
Direct materials	$ 15.00
Variable overhead	$ 6.00
Total Variable Costs	$ 33.00
Fixed costs
Manufacturing	$ 85,000
Selling	$ 65,000
Administrative	$ 542,000
Total fixed costs	$ 692,000
Selling price per unit	$ 60.00
Expected sales (units)	$ 45,500

1) If the costs and sales price remain the same, what is the projected operating profit for the coming year?

Projected Operating Profit = $ 536,500

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2) What is the breakeven point in units for the coming year? (Round your answer up to the nearest whole number).

Breakeven point = 25,630 units

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3) Jan has set the sales target for 52,700 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $221,440 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $221,440 is spent on advertising and sales rise to 52,700 units?

Operating profit = $ 509,460

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4-a) What will be the new breakeven point if the additional $221,440 is spent on advertising? (Round your answer up to the nearest whole number).

New Breakeven Point = 33,832 units

(-->STRANGE Rounding I know, but the program is going with this answer)

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4-b) Prepare a contribution income statement at the new break-even point.

CONNELLY, INC.
Contribution Income Statement
Sales Revenue		$ 2,029,920
Less: Variable costs		$ 1,116,456
Contribution margin		$ 913,464
Less: Fixed costs
Original amount	$ 692,000
Incremental amount	$ 221,440
		$ 913,440
Operating profit		$ 24

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4-c) What is the percentage change in both fixed costs and in the breakeven point? (Input your answers as whole percentages rounded to 2 decimal places (i.e., .1567 = 15.67%).)

Percentage change in Fixed Cost	???	%
Percentage change in breakeven point	???	%

5) If the additional $221,440 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current years income at 45,500 units? (Round your answer up to the nearest whole number).

Sales Level

???

Units