Question: QQ Company's most recent contribution format income statement is presented below: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income(loss) $83,000 $62,250 $20,750

QQ Company's most recent contribution format income statement is presented below:

QQ Company's most recent contribution format income statement is presented below: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income(loss) $83,000 $62,250 $20,750 $28.000 $7,250 The company sells its only product for $22 per unit. There were no beginning or ending inventories. Required: 1. Compute the company's break-even point in units sold. (3 marks) 2. Compute the total variable expenses at the break-even point. (2 marks) 3. How many units would have to be sold to earn a target operating income of $10000? (2 marks) 4. The sales manager is convinced that a $8400 increase in the advertising budget would increase total sales by $21000. (4 marks) a. What is the incremental operating income? b. Would you advise the increased advertising outlay? (Yeso) Why

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