Livart, Inc., manufactures and sells table sets. In 2016, it reported the following:

1. What was Livarts operating income in 2016? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost to achieve the selling price? What are the total fixed costs?

2. Livart is considering increasing the annual spending on advertising by $200,000. The managers believe that the investment will translate into a 10% increase in unit sales. Should the company make the investment? Show your calculations.

3. Refer back to the original data. In 2017, Livart believes that it will be able to sell only 2,700 units at the price calculated in requirement 1. Management has identified $185,000 in fixed cost that can be eliminated. If Livart wants to maintain a 10% markup on full cost, what is the target variable cost per unit

Question 12 (15 points) Livart, Inc., manufactures and sells table sets. In 2016, it reported the following: Units produced and sold Investment Markup percentage on full cost Rate of return on investment Variable cost per unit 3,000 $3,000,000 10% 15% $600 1. What was Livart's operating income in 2016? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost to achieve the selling price? What are the total fixed costs? 2. Livart is considering increasing the annual spending on advertising by $200,000. The managers believe that the investment will translate into a 10% increase in unit sales. Should the company make the investment? Show your calculations. 3. Refer back to the original data. In 2017, Livart believes that it will be able to sell only 2,700 units at the price calculated in requirement 1. Management has identified $185,000 in fixed cost that can be eliminated. If Livart wants to maintain a 10% markup on full cost, what is the target variable cost per unit