a)The president believes that a $ 16 000 increase in the monthly advertising budget combined with...

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a)The president believes that a $ 16 000 increase in the monthly advertising budget combined with an intensified effort by the sales staff, will result in an $80 000 increases in monthly sales. If the president is right, what will be the effect on the company's monthly net income or loss?( Use the equation and contribution margin method) [6marks] b. Prepare break even chart using excel to show the new breakeven point [4 marks] Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $ 60 000 in the monthly advertising budget will cause unit sales to double. What will the new income statement look like if these changes are adopted? [6 marks] a)The president believes that a $ 16 000 increase in the monthly advertising budget combined with an intensified effort by the sales staff, will result in an $80 000 increases in monthly sales. If the president is right, what will be the effect on the company's monthly net income or loss?( Use the equation and contribution margin method) [6marks] b. Prepare break even chart using excel to show the new breakeven point [4 marks] Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $ 60 000 in the monthly advertising budget will cause unit sales to double. What will the new income statement look like if these changes are adopted? [6 marks]

Answer rating: 100% (QA)

1 2 Unit sales 19500 x 2 39000 Sales 39000 x 30 x 110 1053000 Fixed expenses 180000 60000 2... View the full answer