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3. The Rest-a-Lot Chair Company manufactures one product, a recliner. The firm currently produces and sells 3,000 recliners per month and has capacity for 5,000
3. The Rest-a-Lot Chair Company manufactures one product, a recliner. The firm currently produces and sells 3,000 recliners per month and has capacity for 5,000 recliners per month. The firm's costs are as follows: The firm sells each recliner for $500. c. The firm is considering increasing variable marketing costs by $75 per unit sold in an effort to increase sales volume. What is the minimum increase in sales volume that would be required for these increased costs to increase the firm's profits? Current CM=3753000=1,125,000 New CM/ unit =300 Units =1,125,000/300=3750 Increase of 750 units
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