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Name: D: 8 Problemm 72 poiney Langin Company's most recent contribution format income statement is presented below $863,300 427,200 436,100 Variable expenses Contribution margin.. Fixed

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Name: D: 8 Problemm 72 poiney Langin Company's most recent contribution format income statement is presented below $863,300 427,200 436,100 Variable expenses Contribution margin.. Fixed expense352.400 Net operating income.$33.70 The company sells its only product for $20 per unit. There were no beginning or ending inventories When performing calculations, round ratios to three decimal places (nearest tenth of a percent.) a. Compute the company's break-even point in units sold. Round to the next higher unit b. Compute the total variable expenses at the break-even point. Round to the nearest dollar. c. How many units would have to be sold to earn a target profit of $109,0002 Round to the next higher unit d. The sales manager is convinced that a $60,000 increase in the advertising budget would increase total sales by $125,000. Would you advise the increased advertising outlay? Show claculation(s) to justify your answer 8. 2 pointy Tanner Company's most recent contribution format income statement is presented below: $75,000 Sales ales.... Variable expense. 45,000t eo 5 Contribution margin.. 30,000 36,000 Fixed expense. Net operating los.$6.000) The company sells its only product for $15 per unit. There were no beginning or ending inventories Required: a. Compute the company's break-even point in units sold 1200o b. Compute the total vriable expenses at the break-even point c. How many units would have to be sold to earn a target profit of $9,000 d. The sales manager is convinced that a $6,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay? Show claculation(s) to justify your

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