Refer to the data in Exercise 11 3 Assume that Vancouver s
Refer to the data in Exercise 11–3. Assume that Vancouver’s sales by major market are as follows:
In Exercise
The company would like to initiate an intensive advertising campaign in one of the two markets during the next month. The campaign would cost $8,000. Marketing studies indicate that such a campaign would increase sales in the construction market by $70,000 or increase sales in the landscaping market by $60,000.
Required:
1. In which of the markets would you recommend that the company focus its advertising campaign? Show computations to support your answer.
2. In Exercise 11–3, Vancouver shows $90,000 in traceable fixed expenses. What happened to the $90,000 in this exercise?
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