Below is the budgeted P&L Statement for Pittsburgh Tools, Inc - Cordless Division. Pittsburgh Tools - Cordless Division Budgeted Quarterly Product Line Contribution Margin Analysis 18v Drill/Driver 4,300 $537,500 $125.00 223,600 52.00 $313,900 $73.00 18v Circular Saw 3,100 $465,000 $150.00 210 800 68.00 $254.200 $82.00 18V Light 5,590 $279,500 $50.00 156,520 * 28.00 $122.980 $22.00 Total 12.990 $1,282,000 590 920 $891,080 Sales Volume (units) Revenue Variable costs Contribution Margin Assigned Feed Costs Production costs Segment Margin Common Fixed Production Fixed SG&A expenses Operating income Income taxes (21%) Net Operating Income 128,000 $185,900 132,000 $122,200 113,000 $9.980 373.000 $318,080 30,000 200,000 $88,080 18. 497 69.583 $ 1. Referring to the original Budgeted P&L and using DOL, estimate the increase in pretax operating income if sales volume increased by 5%. 2. Determine the breakeven point, in units, for the Circular Saw product line individually. I 3. Determine the budgeted weighted average contribution margin ratio (WACM%) for the cordless division. 4. Determine the budgeted sales mix based on revenue. Assignment #6 5. Assume the current sales mix remains the same as expected in the quarter; determine the sales revenue (in total and by product line) necessary for the division to achieve $80,000 after-tax profit. 6. CHALLENGE! Pittsburgh Tools is considering increasing its advertising for the quarter, adding $10,000 of advertising expenses. Historically, sales volume increases uniformly across the product I lines by 1% for each $5,000 of additional advertising budget. Is this worthwhile? Document your analysis and comment on the results