Question: AC Ltd Sales ($10 per unit) 160,000 Variable Costs 112,000 Contribution Margin 48,000 Fixed Costs (70,000) Net Loss (22,000) If ACs advertising increased by $9,000

AC Ltd

Sales ($10 per unit) 160,000

Variable Costs 112,000

Contribution Margin 48,000

Fixed Costs (70,000)

Net Loss (22,000)

  1. If ACs advertising increased by $9,000 and they wanted to achieve a Profit of $5,000, how much (in $) would their sales have to increase?
  2. What would their Profit (or Loss) be if sales increased by 25% and fixed costs were reduced by 10%?

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