10/26/2020 Yahoo - Photo from Abdullahi Shahada 100% 2-39 PM Mon Oct 26 X IAC103_Mid 2. Tanner Company's most recent contribution format income statement is presented below: Sales Variable expenses Contribution margin Fixed expenses Not operating loss $75,000 15.00 10.000 36.000 S1600 The company sells its only product for 515 per unit. There were no beginning or ending 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 eam a target profit of 89,000? d. The sales manager is convinced that a 6,000 increase in the advertising budget would increase total sales by $25,000. Would you advise the increased advertising outlay? 3.. O'Bannion Company, which has only one product, has provided the following data concerning its most recent month of operations: SI24 Selling price Units in beginning inventory Units produced Units sold Unitsin ending inventory. 0 6.100 5.600 SCO Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 523 S43 $2 SII $183.000 S61.600 Required: a. Prepare a contribution format income statement for the month using variable costing b. Prepare an income statement for the month using absorption costing. Sent from Yahoo Mail on Android