1. Create a contribution margin income statement when sales increase by 5%.

Sales Variable Costs 38.000 20.900 Contribution Margin 17,100

Fixed Costs 13,000

Operating Income 4,100

(already done in class - 10)

2. The following monthly data are available for the Eager Company and its only product-(10)

Unit sales price

Unit variable

expenses Total fixed

expenses $180.000 Achal sales for the month of March 7,000 un Calculate MOS 2) Tanner Company's most recent contribution format income statement is presented below-(10) Sales Less variable expos Contribution margin Less fixed expenses Net loss STS $30 $75,000 45,000 30,000 36,000 (56.000 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. b. Compute the total variable expenses at the break-even point. c. How many units would have to be sold to earn a target profit of $9,000? d. The sales manager is convinced that a $6,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay?

1. Create a contribution margin income statement when sales increase by 5%. (already done in class - 10) 2. The following monthly data are available for the Eager Company and its only product-(10) Calculate MOS 2) Tanner Company's most recent contribution format income statement is presented below-(10) 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. b. Compute the total variable expenses at the break-even point. c. How many units would have to be sold to carn a target profit of $9,000 ? d. The sales manager is convinced that a $6,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay? (already done in class - 10) 2. The following monthly data Company and its only product- Calculate MOS 2) Tanner Company's most rec statement is presented below-(1