Martha Manufacturing produces a single item that sells for $80. Variable costs per unit equal $32. The
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Question:
Martha Manufacturing produces a single item that sells for $80. Variable costs per unit equal $32. The company expects total fixed costs to be $72,000 at the projected sales level of 2,000 units for next month. Suppose management believes that the $24,000 increase in monthly advertising expense will result in a significant increase in sales.
How much would sales need to increase to justify this additional expense?
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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