Fry Corporation developed the following income statement using a contribution margin approach: Fry Corporation Projected Income Statement For the Current Year Sales (8,000 units) Less variable costs: Variable manufacturing costs Variable selling costs Total variable costs Contribution margin Less fixed costs: Fixed manufacturing costs Fixed selling and administrative costs Total fixed costs Operating income Required: $68,500 34,500 $76,000 21,500 $298,000 103,000 $195,000 97,500 $97,500 A. Determine the break-even point in sales dollars. Round units Up to next whole unit. Use rounded amount in subsequent computations. 150,000 X Less fixed costs: Fixed manufacturing costs Fixed selling and administrative costs Total fixed costs Operating income Required: $76,000 21,500 150,000 X 97,500 $97,500 A. Determine the break-even point in sales dollars. Round units Up to next whole unit. Use rounded amount in subsequent computations. For B-C, round final answer to the nearest whole dollar. B. The sales manager believed the company could increase sales by 1,750 units if advertising expenditures were increased by $12,000. By how much will the operating income increase or decrease if the advertising is increased as suggested? 29,072 X decrease - X c. What is the maximum amount the company could pay for advertising if the advertising would increase sales by 1,750 units? 42,656 X