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please answer 1-5 Connelly Incorporated, a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years.
please answer 1-5
Connelly Incorporated, a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign nex year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Required: 1. If the costs and sales price remain the same, what is the projected operoting profit for the coming yeare 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 38,000 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $215,080 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additiona! $215,080 is spent on advertising and sales rise to 38.000 units? 4-a. What will be the new breakiven point if the additional $215.080 is spent on advertising? 4.b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $215.080 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year's operating profit at 34,500 units? Complete this question by entering your answers in the tabs below Step by Step Solution
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