Paragraph Styles Chapter 5 Homework Problem K Surething CD Company reports sales ofi$720 000, variable costs of $432,000, and fixed costs of $108,000. If the company spends $72.000 on a sales promotion campaign, it estimates that sales will be increased by $270.000 Determine whether the sales promotion campaign should be undertaken Provide calculations Alternate problem C Jefferson Company has a plant capacity of 100,000 units, at which level variable costs are $720,000 Fixed costs are expected to be $432.000. Each unit of product sells for $12. 1. Calculate the company s contribution margin ratio and contribution margin per unit 2. Determine the company s break-even point in sales dollars and units 3. At what level of sales units and sales dollars would the company earn net income of $144,000? If the selling price were raised to S14 40 per unit, at what level of sales units would the company earn $144.000? 4