Your Company's variable expenses are 36% of sales. Your Company is contemplating an advertising campaign that will cost $20,000. If sales increase by $80,000, the company's net operating income should increase by:

$8,800

$31,200

$64,000

$28,800

.

Limited Inc manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $45,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $13,500, sales in units must be:

7,925 units

6,000 units

6,500 units

5,750 units