Exercise 9-21 Breakeven Planning; Profit Planning (LO 9-2, 9-3) Connelly Inc, a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year $24.00 25.00 12.00 $ 65.00 Vardable costs per sce cream maker Direct labore Direct materials Variable overhead Total variable costs Fixed CORT manufacturing Selling Anstrative Total Fixed costs Selling price per unst Expected sales (unsts) 5.97,500 62,500 406,00 $566,000 120 34,500 Required: 1. If the costs and soles price remain the same. what is the projected operating profit for the coming year? 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 38,000 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $215.080 for advertising All other costs remain as per the data in the above table. What will be the operating profit if the additional 4-a. What will be the new breakeven point if the additional $215,080 is spent on advertising? 4-6. Prepare a contribution income statement at the new breakeven point 4.c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $215,080 is spent for advertising in the next year, what is the sales level on units) needed to equal the current year's Operating profit at 34,500 units? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Red 4A Reg 48 Reg 40 Regs If the costs and sales price remain the same, what is the projected operating profit for the coming year? Projected operating profit Req 2 > Complete this question by entering your answers in the tabs below. Regi Reg 3 Reg 4 Reg 48 Reg 4C Reg 5 What is the breakeven point in units for the coming year? (Round your answer up to the nearest whole number) Breve point units Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 48 Reg 40 Reg 5 Jan has set the sales target for 38.000 led cream makers, which she thinks she can achieve by an additional fixed selling expense of $215,080 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $215,080 is spent on advertising and sales rise to 38.000 units? Operatino profit Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 48 Reg 4C Reqs What will be the new breakeven point if the additional $215,080 is spent on advertising? (Round your answer up to the nearest whole number.) New breakeven point units Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Req 40 Reqs Prepare a contribution income statement at the new breakeven point. CONNELLY, INC Contribution Income Statement $ Original amount Incremental amount 5 $ 0 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Reg 48 Reg 4C Reg 5 If the additional $215.080 is spent for advertising in the next year what is the sales level (in units) needed to equal the current year's operating profit at 34,500 units? (Round your answer up to the nearest whole number.) Slove units
