work Saved Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Variable costs per ice cream maker Direct labon Direct materials Variable overhead Total variable costs. Fixed costs Manufacturing Selling Administrative Total fixed costs Selling price per unit Expected sales (units) $ 24.00 29.00 12.00 $ 65.00 $ 97,500 62,500 406,000 $566,000 120 34,500 Required: the costs and sales price remain the same, what is the projected operating profit for the coming year? What is the breakeven point in units for the coming year? 3Jon has set the sales target for 38,000 ice cream makers, which she thinks she can achieve by an additional fixed selling expense of $215.080 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $215.080 spent on advertising and sales rise to 38.000 units? 4-6 Wat will be the new breakeven point if the additional $215,080 is spent on advertising? 4.5. Prepare a contribution income statement at the new breakeven point. What is the percentage change in both foed costs ond in the breakeven point? 5. the additional $215.080 is spent for advertsing in the next year, what is the seles level (in units) needed to equal the current year's Operating profit 01 34 500 units? co search 0 Prev 2 of 4 Next >