The following information pertains to Trikster Company's budgeted income statement for the month of June 2011: (Click the icon to view the budgeted income statement.) Requirements (a) Determine the company's breakeven point in both units and dollars. (b) The sales manager believes that a $26,000 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased advertising in order to break even on the monthly expenditure? (c) The sales manager believes that an advertising expenditure increase of $26,000 coupled with a 15% reduction in the selling price will double the sales quantity. Determine the net income (or loss) if these proposed changes are adopted.

The following information pertains to Trikster Company's budgeted income statement for the month of June 2011: (Click the icon to view the budgeted income statement.) Requirements Determine the company's breakeven point in both units and dollars. (b) The sales manager believes that a $26,000 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased advertising in order to break even on the monthly expenditure? (c) The sales manager believes that an advertising expenditure increase of $26,000 coupled with a 15% reduction in the selling price will double the sales quantity. Determine the net income (or loss) if these proposed changes are adopted. - X Requirement (a) Determine the co Data table Begin with the breakeven units. Fi Sales (2,000 units @ $260) $ 520,000 Variable cost 260,000 Now determine the company's bre Contribution margin $ 260,000 point in dollars. Fixed cost 286,000 Net loss $ (26,000) Requirement (b) The sales mana It in a considerable increase in sales. How much of an increase in sales must result from increased advertising in orde Print Done Next