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Q3 (30 MINUTES, 20 MARKS) Tanner Company's most recent contribution format income statement is presented below: Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses

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Q3 (30 MINUTES, 20 MARKS) Tanner Company's most recent contribution format income statement is presented below: Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Loss $75,000 $45,000 $30,000 $36,000 $(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

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