Connelly Incorporated, 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 DeJaney, 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 per ice cream maker Direct labor Direct materials. Variable overhead Total variable costs Fixed costs Manufacturing Selling Administrative Total fixed costs $ 13.50 14.50 6.00 $ 34.00 $ 82,500 42,000 356,000 $ 480,500 Selling price per unit Expected sales (units) $ 67.00 30,000 Required: 1. If the costs and sales price remain the same, what is the projected operating profit for the coming year? 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 35,000 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $200,000 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $200,000 is spent on advertising and sales rise to 35,000 units? 4-a. What will be the new breakeven point if the additional $200,000 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $200,000 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year's operating profit at 30,000 units? Prepare a contribution income statement at the new breakeven point. CONNELLY, INC. Contribution Income Statement Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Original amount Incremental amount Operating profit $ 2,345,000 1,190,000 x $ 1,155,000 $ 0 $ 1,155,000 Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $ 750 300 Cleaner 600 $ 1,000 450 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $265,200. Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach. 2. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. (Do not round intermediate calculations.) Overall breakeven point in sales dollars $ 254,800