$($a$)$

Your answer is correct.

Calculate the following:

Variable selling and administrative expenses. $

Fixed manufacturing overhead.

Fixed selling and administrative expenses.

Assistance Used

eTextbook and Media

$

Attempts: $5$ of $10$ used

$($b$)$

Your answer is incorrect.

Ignoring your answer to above part, assume that fixed manufacturing overhead was $$101,000$ and the fixed selling and administrative expenses were $$80,000.$ The marketing vice president feels that if the company increased its advertising, sales could be increased by $19\%.$ What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure, assuming that the contribution margin ratio remains unchanged?

Maximum increased advertising expenditure $