Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Variable costs pet ice croam maker: Direct labor $15.00 Direct materials 18.50 Variable overhead 7.50 Total variable costs $41.00 Fixed costs: Manufacturing $95,500 Selling 55,500 Administrative 548,000 Total fixed costs $699,000 Selling price per unit $75 Expected sales (units) 41,000

Required:

1. What is the contribution margin ratio?

2. What is the breakeven point in units and dollars for the coming year?

3. The sales target are for 45,400 ice cream makers, which the president thinks can be achieved by an additional $234,165 for advertising. All other the data in the above table. What will be the operating profit if the additional $234,165 is spent on advertising and sales rise to 45,400 units?

4. What will be the new breakeven point in units and dollars if the additional $234,165 is spent on advertising?

Please explain it step by step and use the numbers above!