Soylent Green Company makes a variety of pet foods. The company is planning a promotional sales...
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Soylent Green Company makes a variety of pet foods. The company is planning a promotional sales campaign for one of its pet food products. The campaign will last one month and the company has budgeted $120,000 for promotional activities. The following data have been assembled for purposes of deciding which of the product lines to select for the campaign. Dog Food Cat Food (per unit) Selling Price $93.00 $98.00 Production Costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead. Total Production Cost Variable Selling Expenses Fixed Selling Expenses* Total Cost* Operating Profit per Unit * Does not include promotional costs of $120,000. No increase in production facilities would be necessary to produce and sell the budgeted volume of dog food or cat food. The extra activity will not increase existing fixed costs or disrupt existing production in any way. Soylent Green anticipates that 3,500 additional units of dog food or 4,000 additional units of cat food could be sold in response to the promotional campaign. 16.00 13.00 9.00 5.00 43.00 7.00 13.00 63.00 30.00 22.00 14.00 9.00 4.00 49.00 11.00 10.00 70.00 28.00 Soylent Green Company makes a variety of pet foods. The company is planning a promotional sales campaign for one of its pet food products. The campaign will last one month and the company has budgeted $120,000 for promotional activities. The following data have been assembled for purposes of deciding which of the product lines to select for the campaign. Dog Food Cat Food (per unit) Selling Price $93.00 $98.00 Production Costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead. Total Production Cost Variable Selling Expenses Fixed Selling Expenses* Total Cost* Operating Profit per Unit * Does not include promotional costs of $120,000. No increase in production facilities would be necessary to produce and sell the budgeted volume of dog food or cat food. The extra activity will not increase existing fixed costs or disrupt existing production in any way. Soylent Green anticipates that 3,500 additional units of dog food or 4,000 additional units of cat food could be sold in response to the promotional campaign. 16.00 13.00 9.00 5.00 43.00 7.00 13.00 63.00 30.00 22.00 14.00 9.00 4.00 49.00 11.00 10.00 70.00 28.00
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Deciding Which Product Line to Choose for the Promotional Campaign Based on the provided data we can ... View the full answer
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