Operating information for four different products sold by Kline Company follows:

Common fixed costs are $270,000 and the income tax rate is 35%.
Required:
1. If all variable costs increased by 10% and the company incurred $1,000,000 in additional advertising costs, what is the new break-even point in revenue dollars and units of each product?
2. How would your answer to Requirement 1 change if the expected unit sales changed to 900, 400, 500, and 200, respectively?
3. What two different levels of sales revenue would be required under the revised circumstances outlined in Requirements 1 and 2, respectively, for Kline to achieve an after-tax profit of $2,470,000?

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Product A 1,000 Product B Product C 300 Product D 100 $3,600,000 2,350,000 300,000 213,000 150,000 Units sold 600 Sales Variable product costs Identifiable fixed product costs Variable selling/administrative Identifiable fixed selling/administrative S500,000 $1,080,000 $2,760,000 25,000 25,000 64,200 220,000 150,000 300,000 240,000 50,000 50,000