Problem $4-42.$ Multi$-$Product Operation with a Change in Parameters

OBJECTIVE $1$

$2$

$4$

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

$\backslash$table$[[,\backslash$table$[[$Product$],[$A$]],$Product B$,$Product C$,$Product D$],[$Units sold,$1,000,600,300,100],[$Sales$,$$$500,000,$$$1,080,000,$$$2,760,000,$$$3,600,000],[$Variable product costs,$300,000,630,000,1,650,000,2,350,000],[\backslash$table$[[$Identifiable fixed product$],[$costs$]],25,000,220,000,300,000,300,000],[\backslash$table$[[$Variable$],[$selling$/$administrative$]],25,000,150,000,240,000,213,000],[\backslash$table$[[$Identifiable fixed$],[$selling$/$administrative$]],64,200,50,000,50,000,150,000]]$

Common fixed costs are $$270,000$ and the income tax rate is $35$ percent.

Required:

Note: Round all dollar values to the nearest dollar.

If all variable costs increased by $10$ percent and the company incurred $$1,000,000$ in additional advertising costs, what is the new BEP in revenue dollars and units of each product?

How would your answer to Requirement $1$ change if the expected unit sales changed to $900,400,500,$ and $200,$ respectively?

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?$