Data for Snow and Fang Corporation are shown below: Per Unit Percent of Sales Selling Price 75.00 100.00% Variable Expenses 45.00 60.00% Contribution Margin 30.00 40.00% Fixed expenses are 75.000.00 per month and the company is selling 36,000.00 units annually. 70. The marketing manager argues that an 8,000.00 increase in the monthly advertising budget would increase monthly sales by 15,000.00. Should the advertising budget be increased? a. No, profit is to decrease by 24,000.00 b. Yes, profit is to increase by 24,000.00 c. No, profit is to decrease by 9,600.00 d. Yes, profit is to increase by 9,600.00 e. No effect in Net Income 71. Refer to original data. Management is considering using higher-quality components that would increase the variable cost by 3.00 per unit. The marketing manager believes the higher-quality product would increase sales by 15.00% per month. Should the higher-quality components be used? a. No, profit will be worse-off by 37,800.00 b. Yes, profit will be better-off by 37,800.00 c. No, profit will be worse-off by 38,700.00 d. Yes, profit will be better-off by 38,700.00 e. No effect in Net Income72. Treating this scenario independently. Assume that the management is purchased a new machinery which increases fixed costs by 10,000.00 per month but due to the enhance output of the said fixed asset the sales boosts by 75,000.00 per quarter. What is the net effect on income? a. No, profit will be worse-off by 90,000.00 b. Yes, profit will be better-off by 90,000.00 c. No, profit will be worse-off by 60,000.00 d. Yes, profit will be better-off by 60,000.00 e. No effect in Net Income Alexandria Door Company sells customized doors to home builders. The doors are sold for 60.00 each. Variable costs are 42.00 per door, and fixed costs total 450,000.00 per year. The company is currently selling 30,000.00 doors per year. 73. Assume that the income tax rate is 30.00% compute the break sales in units and in pesos? a. 10,714.29 units and 642,857.14 pesos b. 17,500.00 units and 1,050,000.00 pesos c. 25,000.00 units and 1,500,000.00 pesos d. 35,714.29 units and 2,142,857.14 pesos74. Management is confident that the company can sell 37.500.00 doors next year. The expected percentage increase in pretax net operating income for next year is? a. 100.00% c. 250.00% b. 75.00% d. 150.00% 75. Without prejudice to above problem, the expected after tax income for next year amounted to? a. 135.000.00 c. 157.500.00 b. 94.500.00 d. 225,000.00