Enviro Doors Ltd sells a single product - sliding doors to home improvement retailers nationwide.

The company is planning for next year, and the following profit statement was recently discussed at the management meeting.

Sales (16,000 units @ $120)	$1,920,000
Variable costs (16,000 units @ $68)	$1,088,000
Contribution margin	$832,000
Fixed costs	$40,500
Net income (loss)	$791,500

Required:

a) How many units must be sold to break even?

b) How much is the total break-even sales dollars for the company?

c) Based on the above information, the national sales manager believes that if they invest an additional $32,000 in advertising, they will increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Enviro Doors Ltd if they incur additional advertising costs.

d) Do you think it's a good suggestion? Explain

e) Suggest another way the company can increase its profits next year.