Connelly Incorporated, a manufacturer of qualify electric ice cream makers, has experienced a steady growth...
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Accounting
Connelly Incorporated, a manufacturer of qualify electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan DeJaney, the president, believes she needs an aggresslve advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current years Required: 1 If the costs and sales price remain the same, what is the projected operating profit for the coming year? 2. What is the breakeven point in units for the coming year? 3. Jan has set the sales target for 51,800 ice cream makers, which she thinks she can achieve by an additional fixed seling expense of $263,500 for advertising. All other costs remain as per the data in the above table. What will be the operating profit if the additional $263,500 is spent on advertising and sales rise to 51,800 units? 4 a. What wil be the new breakeven point if the additional $263,500 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4c. What is the percentage change in both fxed costs and in the breakeven point? 5 . If the additional $263,500 is spent for advertising in the next year, what is the sales level (in unis) needed to equal the current year's operating profit at 47,500 units? Complete this question by entering your answers in the tabs below. Prepare a contribution income statement at the new breakeven point

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