Unit 3 Assignment Exercise 9-35; p 350 Variable Costs per ice cream Direct Labor $13.50 Direct Materials $14.50 Variable Overhead $6.00 Total…

Unit 3 Assignment Exercise 9-35; p 350 Variable Costs per ice cream Direct Labor $13.50 Direct Materials $14.50 Variable Overhead $6.00 Total Variable Cost $34.00 Fixed Costs Manufacturing $82,500.00 Selling $42,000.00 Administrative $356,000.00 Total Fixed Cost $480,500.00 Selling Price Per Unit $65.00 Expected Sales(Units) 30,000 1. If the cost and sales price remain the same, what is the project for the compng year? 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 35,000 ice cream makers which she think she can achieve by an additional fixed selling expense of $200,000 for advertising. All other cost remains as in requirement 1. what will be the operating profit if the additional $200,000 is spent on advertising and sales rise to 35,000 units? 4. What will be the new breakdown point if the additional $200,000 is spent on advertising? If the additional $200,000 is spent for advertising in the next year, what is the required sales level in the units to equal the current year’s income at 30,000 units?

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