marks $($Total $60$ marks$).$ Fuse, has been operating for only a few months. Budgeted sales broducts $-$ Hippo, Lippo, and coming month are shown below:

Required:

Calculate the break$-$even point sales level based on information from the budgeted income statement above.

Assume that during the year company was able to meet its budgeted sales level of $${500}^{\text{'}}000$; with individual sales figures for each product of $${260}^{\text{'}}000$ for Hippo, $${110}^{\text{'}}000$ for Lippo, and $${130}^{\text{'}}000$ for Fuse.

a$.$ Prepare a contribution income statement based on actual sales data. Present th income statement in the format shown above.

b$.$ Compute the break$-$even sales for the month, based on your actual data.

marks'

$(4$ mark

President was shocked after seeing the income statement you prepared in $(2)$ above

a$.$ Explain, what shocked the president?

b$.$ Suppose the company has $$50000$ to spend on advertising next year, which $p$ would you suggest the company to advertise more? Explain why.

c$.$ Suppose that company is able to maintain the same sales level of $${500}^{\text{'}}000r$ but Hippo sales are zero, would you expect the BEP in dollars to be highe than this year? Explain; no calculations.