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Question 2 Harper Company produced and sold 75,000 bags during the year 2021 at $50 per unit. Total xed cost was $2,100,000 while variable cost
Question 2 Harper Company produced and sold 75,000 bags during the year 2021 at $50 per unit. Total xed cost was $2,100,000 while variable cost was $20 per unit. (a) Prepare a contribution margin income statement for the Year 2021. (b) Determine the breakeven point in units and in dollars. (c) Determine the breakpoint point in units and in dollars if variable cost increased by 25%. (d) Ignoring part (c), the sales manager proposes to spend $120,000 on advertisement. According to him, this will result in an increase of sales of 3,500 units. Should the proposal be accepted
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