If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are...

Question

If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are expected to increase by 8%. What is the break-even and margin of safety under these circumstances?
Extracted text: Mirabel Manufacturing
Budgeted Income Statement
For the Year Ending December 31
$
Sales
36,750,000
Cost of goods sold:
Variable
13,300,000
Fixed
9,300,000
Gross Margin
$
14,150,000
Selling & Administrative
$
$
$
Commissions
4,410,000
Fixed Marketing Expenses
1,350,000
Fixed Administrative
6,000,000
Net Operating Income
2,390,000
Model 101
Model 201
Model 301
Normal Annual Sales Volume
Unit Selling Price
Variable expense per unit
16,000
19,000
11,000
650
750
$
1,100
$
250
200
500
%24
のの

Prince · Accepted Answer

Sheet1
	Revised Sales	101	201	301
	Volume	16,000.00	19,000.00	11,880.00
	Price	$650.00	$750.00	$1,100.00
	Value	$10,400,000.00	$14,250,000.00	$13,068,000.00
	Total	$37,718,000.00
	Particular	Existing	Proposed
	Sales	$36,750,000.00	$37,718,000.00
	Variable Costs:
	Cost of goods sold	$13,300,

Mirabel Manufacturing Budgeted Income Statement For the Year Ending December 31 $ Sales 36,750,000 Cost of goods sold: Variable 13,300,000 Fixed 9,300,000 Gross Margin $ 14,150,000 Selling &...

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