7, If the company is able to reduce variable costs by $2.00 per unit and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of 68,000?

8, Compute the sales that would be required to generate the same operating income ($24,000), when one dollar decrease of the companys unit contribution margin, and 10 % increase of fixed expenses?

9, The sales manager is convinced that a $7,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay?

Paco Company's most recent contribution format income statement is presented below: The company sells its only product for $15 per unit. There were no beginning or ending inventories