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Question Two (4 Marks) Data concerning Face Masks Corporation's single product appear below: Details Selling Price Variable Expense Contribution Margin Per Unit 180$ 144 36

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Question Two (4 Marks) Data concerning Face Masks Corporation's single product appear below: Details Selling Price Variable Expense Contribution Margin Per Unit 180$ 144 36 Percent of Sales 100% 80% 20% Fixed expenses are $162,000 per month. The company is currently selling 3,000 units per month. Required: The marketing manager believes that a $10,000 increase in the monthly advertising budget would result in a 480 unit increase in monthly sales. 1. What should be the overall effect on the company's monthly net operating income of this change? Show your computations! 2. What is the breakeven point in dollars and in units if we accept the marketing manager proposal? Requirement 1: Details Before marketing manager proposal After marketing manager proposal Sales Variable expenses Contribution margin Fixed expenses Net income Decision Requirement 2

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