Tanner Company's most recent contribution format income statement is presented below: Sales ........ Variable expenses Contribution margin Fixed expenses Net operating loss.. $75,000 45,000 30.000 36,000 $(6,000) The company sells its only product for $15 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 earn a target profit of $9,000? 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?

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