Question 2: Martha Manufacturing produces a single product that sells for $80. Variable costs per unit equal $32. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. 1. a. 2. What is the current breakeven point in terms of number of units? 1,500 units b. 2,250 units c. 3,333 units d. none of the above Suppose management believes that a $16,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by how much to justify this additional expenditure? a. 200 units b. 334 units 500 units d. none of the above c. 3. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in sales. If this proposed reduction in selling price is implemented, a. operating income will decrease by $8,000. b. operating income will increase by $8,000. operating income will decrease by $16,000. d. operating income will increase by $16,000. c. Act Got