Question: Variable manufacturing overhead:2.80, fixed manufacturing overhead:5 Assume that each year, a company normally produces and sells 66,000 units of its only product for $45 per

Variable manufacturing overhead:2.80, fixed manufacturing overhead:5

Assume that each year, a company normally produces and sells 66,000 units of its only product for $45 per unit. The company's average unit costs at this level of activity are given below: Direct materials: $11.50 Direct labor: $12.00 Variable manufacturing overhead: $2.80 Fixed manufacturing overhead: $5.00 Variable selling expenses: $1.70 Fixed selling expenses: $4.50 Total cost per unit: $32.50 The company's relevant range of production is 70,000 - 100,000 units. It believes that spending an additional $215,000 on advertising would increase unit sales by 26.5%. What is the financial advantage (disadvantage) of spending the additional money on advertising

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