The budgeted income statement of Port Williams Gift Shop is given below:

Net revenue $600,000

Less: expenses, including $300,000 of fixed expenses 660,000

Net loss $(60,000)

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The manager believes that an increase of $150,000 on advertising outlays will increase sales substantially.

Find out: 1. At what sales volume will the store break even after spending $150,000 on advertising

2. What sales volume will result in a net profit of $30,000?

by salam