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4) The president believes that a 10,000 cost spent on a marketing campaign, combined with an intensified effort by the sales staff, will result in

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4) The president believes that a 10,000 cost spent on a marketing campaign, combined with an intensified effort by the sales staff, will result in an 50,000 increase in annual sales. Evaluate the president's suggestion calculating the additional profit or loss from that suggestion assuming spare capacity. (6 Marks) Page 3 of 8 2 5010ACC 5) Break-even analysis model uses the marginal costing approach. Discuss FOUR limitations of this model

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