Question: Information for Drone On Limited is shown below: Per Unit Percentage of Sales Selling price $ 1,350 100 % Variable expenses 1,080 80 % Contribution

Information for Drone On Limited is shown below:

Per Unit Percentage of Sales Selling price $ 1,350 100 % Variable expenses 1,080 80 % Contribution margin $ 270 20 % Total fixed expenses are $35,000 per month, and the company is selling 2,000 drones per month.

Required: 1. The marketing manager argues that a $5,600 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? YES or NO

2. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $110 per unit. The marketing manager believes the higher-quality product would increase sales by 30% per month. Should the higher-quality components be used? YES or NO

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Information for Drone On Limited is shown below: Per Unit Percentage of Sales Selling price $ 1 , 5 5 0 1 0 0 % Variable expenses 9 3 0 6 0 % Contribution margin $ 6 2 0 4 0 % Total fixed expenses...

Information for Drone On Limited is shown below: Per Unit Percentage of Sales Selling price $ 1,150 100 % Variable expenses 690 60 % Contribution margin $ 460 40 % Total fixed expenses are $70,000...

Information for Drone On Limited is shown below: Per Unit Percentage of Sales Selling price $1,200 100% Variable expenses 900 75% Contribution margin $300 25% Total fixed expenses are $35,000 per...

Data for Coffee Corporation are shown below: Per Unit Percentage of Sales Sales price $90 100 Less: Variable expenses 63 70 Contribution margin $27 30 Fixed expenses are $40,000 per month, and the...

Data for Hermann Corporation are shown below: Per Unit Percentage of Sales Sales price $90 100 Less: Variable expenses 63 70 Contribution margin $27 30 Fixed expenses are $40,000 per month, and the...

Ques 1: Required information Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 55 100% Variable expenses 33 60 Contribution margin $ 22 40% Fixed expenses are...

Information for Drone On Limited is shown below: Percentage of Sales Per Unit Selling price $1,000 100% Variable expenses _800 80% 20% Contribution margin $ 200 Total fixed expenses are $100,000 per...

CHAPTER 5 QUESTION 1 Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 110 100% Variable expenses 77 70% Contribution margin $ 33 30% Fixed expenses are $82,000...

#4,5 Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 135 100 % Variable expenses 81 60 Contribution margin $ 54 40 % Fixed expenses are $87,000 per month and...

Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100% Variable expenses 49 70 Contribution margin $ 21 30% Fixed expenses are $74,000 per month and the...

Using Planck's formula, derive the approximate expressions for the space spectral density uw of radiation (a) In the range where hw

The number of customers at a bank likely will vary by the hour of the day and by the day of the month. What are the implications of this for choosing a forecasting model?

Fire insurance policies may contain an "average clause" to A discourage under-insurance B encourage under-insurance C none of these

Hypothesis Testing of a Single Mean LCTCS Tuition: Louisiana Community And Technical College System consist of 2 community colleges across the state. I think RPCC's tuition and fees is lower than the...

Prepare for a successful job interview.

Describe barriers to effective listening.

List the guidelines for effective listening.