16. Zeeb Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$ 150	100%
Variable expenses	60	40%
Contribution margin	$ 90	60%

Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Answer

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17. The contribution margin ratio of Thronson Corporation's only product is 69%. The company's monthly fixed expense is $455,400 and the company's monthly target profit is $41,400. Determine the dollar sales to attain the company's target profit.

Answer

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