Data for Pure Leaf Corporation are shown below:

Selling Price $35 per unit

Variable Expense $20 per unit

Contribution Margin $15 per unit

Fixed expenses for Pure Leaf total $30,000 and the company is currently selling 5,000 bottles per month.

16.How many bottles does Pure Leaf need to sell each month to break even?

(A) 5,000 (B) 3,000 (C) 2,000 (D) 6,000

17. (Refer to Pure Leaf Corp. discussed above) How much will monthly profit (aka net operating income) increase or decrease if the monthly advertising budget increases by $5,000 and monthly sales increase by $35,000.

(A) $10,000 increase(B) $7,000 increase(C) $10,000 decrease(D) $4,000 decrease