Huels & Sons Inc. manufactures fishing products. As the senior financial analyst of the company, you are responsible for prepare the company's financial statements for internal use. The cost accountant provided you the following estimated financial data for the year 2020

Huels & Sons Inc.

Projected Income Statement

For the Year Ending December 31, 2020

Sales (12,000 units)$240,000

Less variable costs:

Variable manufacturing costs $60,000

Variable selling costs36,000

Total variable costs96,000

Contribution margin$144,000

Less fixed costs:

Fixed manufacturing costs$85,000

Fixed selling and administrative costs35,000

Total fixed cost120,000

Operating income$ 24,000

The company's COO, Dr. Huels asked you to conduct break-even analysis and to provide him information to address the following questions:

1)How much sales in terms of dollars are required for the company to break even?

Contribution Margin per Unit = Price per unit - Variable Cost per Unit

1)Dr. Huels believed the company could increase sales by 1,000 units if advertising expenditures were increased by $15,000. By how much will operating income increase or decrease if the advertising is increased as suggested?

3) What is the maximum amount the company could pay for advertising if the advertising would increase sales by 1,000 units?

1)updated projected Contribution Margin Income Statement for Huels & Sons Inc. for year 2020 based on the information and your response Part 3). The key categories for the contribution format statement should include sales, variable expenses, contribution margin, fixed expenses, and net income. Like the lecture items for this Module, please include per item and total amount. The variable costs should be broken down to a level that represents per unit sold.