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Morton Company's contribution format income statement for last month is given below: Sales (15,000 units x $30 per unit) Variable expenses Contribution margin Fixed expenses

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Morton Company's contribution format income statement for last month is given below: Sales (15,000 units x $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating income $ 450,000 315,000 135,000 90,000 $ 45,000 Required 1 Required 2 Required 3 Required 4 Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $180,000; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. (Do not round intermediate calculations.) Show less A New break even point in dollar sales

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