U IIAIAS) Timeliner Company's most recent contribution format income statement is presented below: Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses $75,000 $45.,000 $30.000 $36.000 6.000 Operating Loss The company sells its only product for $15 per unit. There were no beginning or ending inventories Required: a) Compute the company's break-even point in units sold. (2 Marks) b) Compute the total variable expenses at the break-even point.(2 Marks) c) How many units would have to be sold to earn a target operating income of $9,000? (2 Marks) d) The sales manager is convinced that a S6,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay? (2 Marks)