On question 3b) how do I calculate the fixed cost?

0O0 If advertising costs rise by $20,000. uber of statues that must be sold to earn a sing the original data and sales of 15,000 units, compute the selling price the ompany must charge to make a profit of $101,000. 4. Ac cording to the vice president of marketing, if the price of the statues is reduced and advertising is increased, the most optimistic annual sales estimate is 25,000 units. How much more can be spent on fixed advertising costs if the selling price is reduced to $28.00 per statuc, the variable costs cannot be reduced, and the targeted profit for sales of 25,000 statues is $120,000 LO 4, Breakeven Rnalysis and Planning Future Sales Breakeven units: 200,000 units P9. Bar Company has a maximum capacity of 500,000 units per year. Variable 2:Sales units: 300,000 units manufacturing costs are $25 per unit. Fixed overhead is $900,000 per year. Variable sel ing and administrative costs are $5 per unit, and fixed selling and administrative costs are S300,000 per year. The current sales price is $36 per unit. REQUIRED 1. What is the breakeven point in (a) sales units and (b) sales dollars? 2. BUSINESS APPLICATION How many units must Bar Company sell to earn a profit of $600,000 per year? 3. BUSINESS APPLICATION A strike at one of the company's major suppliers has caused a shortage of materials, so the current year's production and sales are limited to 400,000 units. To partially offset the effect of the reduced sales on profit, man- agement is planning to reduce fixed costs to $1,000,000. Variable cost per unit is the same as last year. The company has already sold 30,000 units at the regular sell- ing price of $36 per unit. a. What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold? b. What contribution margin per unit will be needed on the remaining 370,000 units to cover the remaining fixed costs and to earn a profit of $290,000 this year Planning Future Sales for a Service Business 010 BUSINESS APPLICATION Last Mortgage, lnc.'s primary business is processing he manager of the mortgage application depart LO3,4,5