please use word document

Q3

Tanner Company's most recent contribution format income statement is presented below:

Sales $75,000

Less: Variable Expenses $45,000

Contribution Margin $30,000

Less: Fixed Expenses $36,000

Operating Loss $(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. b) Compute the total variable expenses at the break-even point. c) How many units would have to be sold to earn a target operating income 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?