CVP analysis is based on a simple model of how profits respond to prices, costs, and volume. This model can be used to answer a variety of critical questions such as what is the company's break even volume and what is likely to happen if specific changes are made in prices, costs, and volume ALL of CVP analysis stems from the contribution format incon statement Sales Less: Vaciable Expenses Contribution Margin Less Exed Expenses Net Income Using the information you were given in the Extra Credit problem answer these additional questions: 1) How many units does the company need to sell in order to generate net income of $35.0007 2) Refer to the original information in the problem. The sales manager is convinced that a 550.000 expenditure on advertising will increase the company's unit sales by 25% withou any other increase in fixed expenses. If the sales manager is correct, by how much would the company's net operating income increase or decrease? CVP analysis is based on a simple model of how profits respond to prices, costs, and volume. This model can be used to answer a variety of critical questions such as what is the company's break even volume and what is likely to happen if specific changes are made in prices, costs, and volume ALL of CVP analysis stems from the contribution format incon statement Sales Less: Vaciable Expenses Contribution Margin Less Exed Expenses Net Income Using the information you were given in the Extra Credit problem answer these additional questions: 1) How many units does the company need to sell in order to generate net income of $35.0007 2) Refer to the original information in the problem. The sales manager is convinced that a 550.000 expenditure on advertising will increase the company's unit sales by 25% withou any other increase in fixed expenses. If the sales manager is correct, by how much would the company's net operating income increase or decrease