Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable costs are $12 per unit, and fixed costs total $270,000 annually.

Sales $600,000

Variable expenses ($30x22,000) 240,000

Contribution margin 360,000

Fixed expenses 270,000

Operating income $90,000

Assume again that the company sold 23,000 units last year.

The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $4 per unit. He thinks that this move, combined with some increase in advertising, would increase annual unit sales by 50%. By how much could advertising be increased with profits remaining unchanged? use the incremental analysis approach.1. What is the BEP in units for Goldilocks? What is the margin of safety in units for the recent year