Edible arrangements specializes in special occasion fruit baskets and bouquets. The following data from the "corporate basket", has been provided below:

Sales. $ 33,000

Less: Variable expenses 22,000

Contribution Margin. 11,000

Less: fixes expenses. 8,000

Operating Loss. $3,000

The company sells the corporate basket for $12 each. There were no beginning or ending inventories.

Required:

a) What are the total sales in dollars at the break-even point using the equation method? Check your answers using the contribution method.

b) What are the total variable expenses at the break-even point?

c) Management feels the corporate market is growing and is playing around with potential scenarios:

i) If unit sales were increased by 20% and fixed expenses were reduced by $2,000, what would the company's expected operating income be?

ii) If an advertising campaign, costing $2,000 could increase sales by 30% what would the company's expected operating income be?