Requirements Requirements (a) The sales manager is confident that an intensive advertising campaign will double sales volume. If the company president's goal is to increase this month's profits by 50% over last month's, what is the maximum amount that can be spent on advertising that doubles sales volume? (b) Assume that the company increases the quality of its ingredients, thus increasing variable costs to $0.50 per bar. By how much must the selling price per unit be increased to maintain the same breakeven point in units? (c) Assume next that the company has decided to increase its selling price to 0.90 per bar with no change in advertising or ingredients. Compute the sales volume in units that would be needed at the new price for the company to earn the same profit as it earned last month. month's, what is the maximum amount that can be spent on advertising that doubles sales volume? Now calculate the amount that can be spent on advertising by solving for the unknown advertising costs. The maximum amount that can be spent on advertising is $ the same breakeven point in units? Begin by calculating the breakeven point with the original variable costs. First enter the formula, then calculate the breakeven point. Now enter the formula to compute profit in this scenario. (Abbreviations used: CM= Contribution margin, SP=Sales price, VC=Variable costs) Now solve for the unknown selling price per unit that will maintain the same breakeven point. The selling price per unit to maintain the same breakeven point is $ needed at the new price for the company to earn the same profit as it earned last month. First enter the formula to calculate the sales volume needed (required units), then calculate the required units