A sales manager has projected that an increase in the monthly advertising budget to $$10,000$ will increase monthly sales from $10,000$ units to $12,000$ units. Each unit sells for $$50$ with total variable costs per unit of $$40.$ Monthly fixed expenses, including the current advertising costs of $$5,000,$ total $$20,000.$ Given the above data, what will be the expected impact on net income?

 

Answer rating: 100% (QA)

To determine the expected impact on net income we need to calculate the current net income and the net income after the projected increase in monthly ... View the full answer