A Sales rep is working 50 hours/week. How, can you increase sales, and what will it cost? determine what operating income would be with both of the following changes: 10% increase in activity volume (i.e., sales); and $5,000 increase in fixed expenses (for advertising).

Given a. Total Sales: $550,000 O

Costs/Expenses: Production Labor 202,000 Factory rent 10,000 HQ rent 15,000 Factory electricity 35,000 HQ electricity 10,000 Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Factory Supervision 40,000 HQ Labor 25,000 Selling price/unit $25