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 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 per ice cream maker Direct labor Direct materials Variable overhead Total variable costs Fixed costs Manufacturing Selling Administrative Total fixed costs Selling price per unit Expected sales (units) $11.00 13.50 5.50 $ 30.00 $ 122,000 64,989 434,000 $ 620,000 $ 55 51,500 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 58,600 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $195,300 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $195,300 is spent on advertising and sales rise to 58,600 units? 4-a. What will be the new breakeven point if the additional $195,300 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 $195.300 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year's It the costs and sales price remain the same, what is the projected operating prant for the coming year? 2. What is the breekeven point in units for the coming year 3. Jan has set the sales target for 58500 ice cream makers, which she thinks she can achieve by an attritic $195 200 for advertisey. Al other costs remain as per the data in the above table. What will be the operate $195,300 spent on advertising and sales rise to 58,600 units? 4. What will be the new breakoven port of the additional $195,300 is spent on advertising 4h Prepare a contribution income statement at the new breakeven paint What is the percentage charge In hoch fixed costs and in the breakeven point 4 5. If the additional $135.300 is spent for advertising in the next year, what is the sales ieves in units) reeded operating profit at $1,500 units? Complute this question by unitering your answers in the tabs below Red 11 Rea 1C Dan han are the sales Larget for 58,600 ice cream makers, whids we thinks she can achieve by attitions fixed- expence of $1,300 for advertising, All other costs remain as per the data in the above table. What will be the op profit it the ditional $195,100 spent on adventing and sales rise to 1, ? ng c 10:2 3 Bag 44 Reg 2 R 411 Roy4A >