Quaicte, LLC produces and sells a single product for $140, and incurs variable costs per unit...

Transcribed Image Text:

Quaicte, LLC produces and sells a single product for $140, and incurs variable costs per unit totaling 70% of the sales price. Quaicte currently sells 4,100 units each month and has fixed costs of $135,000 per month. Consider each of the following separately: Part A The marketing manager believes that sales staff could sell as additional 180 units of product each month if properly motivated, and is considering cutting their collective monthly salaries by $46,000 while giving them a $12 commission on each unit sold. What effect should this strategy have on monthly income? of $ Part B Management believes monthly sales can be increased by 480 units if additional quality control steps are taken. These steps would mean an increased variable cost per unit of $6. What is the expected effect on the company's monthly income of adding these additional quality control steps? Part C The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in an increase in monthly sales of 110 units. What would be the effect of this increase in advertising on the company's monthly income? Quaicte, LLC produces and sells a single product for $140, and incurs variable costs per unit totaling 70% of the sales price. Quaicte currently sells 4,100 units each month and has fixed costs of $135,000 per month. Consider each of the following separately: Part A The marketing manager believes that sales staff could sell as additional 180 units of product each month if properly motivated, and is considering cutting their collective monthly salaries by $46,000 while giving them a $12 commission on each unit sold. What effect should this strategy have on monthly income? of $ Part B Management believes monthly sales can be increased by 480 units if additional quality control steps are taken. These steps would mean an increased variable cost per unit of $6. What is the expected effect on the company's monthly income of adding these additional quality control steps? Part C The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in an increase in monthly sales of 110 units. What would be the effect of this increase in advertising on the company's monthly income?

Answer rating: 100% (QA)

Part A To analyze the effect of the proposed strategy on monthly income we need to calculate the changes in costs and revenues Current sales 4100 unit... View the full answer