Question: Rocafella Company's most recent contribution format income statement is presented below: f Sales Less variable expenses Contribution margin Less fixed expenses Net loss $75,000 45,000
Rocafella Company's most recent contribution format income statement is presented below: f Sales Less variable expenses Contribution margin Less fixed expenses Net loss $75,000 45,000 30,000 46,000 ($6,000) The company sells its only product for $18 per unit. There was no beginning ofending inventories. Required: a. Compute the company's break-even point in units sold. b. Compute the total variable expenses at the break-even point. c. How many units would have to be sold to earn a target profit of $9.000? d. The sales manager is convinced that a 58.000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay
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