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CengageNOWv2 | Online teachin x * Course Hero x Topic: Unit 7 Interactive Assessm x G contribution margin - Google Se: X Search Textbooks | SolutionInn x F How to Calculate the Break-Even x | X > C A v2.cengagenow.com/ilmn/takeAssignment/assignmentOverview.do?filterMode=all&studentCourseSelector=174112 P Decision Analysis Cases 1 The following information was extracted from the financial records of Mellon Company: Mellon Company Projected Income Statement For the Current Year Sales (14,000 units) $224,000 Less variable costs: Variable manufacturing costs $84,000 Variable selling costs 42,000 Total variable costs 126,000 Contribution margin $98,000 Less fixed costs Fixed manufacturing costs $43,000 Fixed selling and administrative costs 35,000 Total fixed costs 78,000 Operating income $20,000 Required: A. Determine the break-even point in sales dollars. Round your answer to the nearest whole dollar. 3. The sales manager believed the company could increase sales by 1,000 units if advertising expenditures were increased by $9,000. By how much will operating income increase or decrease if the advertising expenditure is increased as suggested? C. What is the maximum amount the company could pay for advertising if the advertising would increase sales by 1,000 units? Previous Next All work saved. Email Instructor Submit Test for Grading 9:45 PM Type here to search O 83'F Partly cloudy ~ 6/20/2021