The following information pertains to Tulsa Company's budgeted income statement for the month of June

2011:

Sales (1200 units @ $300)	$360.000.00
Variable Cost	$180,000.00
Contribution Margin	$180,000.00
Fixed Costs	$255,000.00
Net Loss	$ (75,000.00)

Requirements:

a) Determine the company breakeven point in both units and dollars.

b) The sales manager believes that a $27,000 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 $27,000 coupled with a 10% reduction in the selling price will double the sales quantity. Determine the net income (or loss) if these proposed changes are adopted.