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All else constant, what would Baldwins SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Boats promotional budget and $750,000 for Boats

All else constant, what would Baldwins SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Boats promotional budget and $750,000 for Boats sales budget?

Select : 1 Save Answer 11.1% 9.7% 8.3% 11.6%

Annual Report

Baldwin

2026 Income Statement

Product Name Bill Boat Buddy Bam Na Na Na Na Total Common Size
Sales $31,088 $31,418 $47,758 $50,369 $0 $0 $0 $0 $160,634 100%
Variable Costs:
Direct Labor $3,170 $3,279 $9,652 $9,015 $0 $0 $0 $0 $25,115 15.6%
Direct Material $13,734 $14,243 $18,711 $19,360 $0 $0 $0 $0 $66,048 41.1%
Inventory Carry $156 $185 $289 $356 $0 $0 $0 $0 $987 0.6%
Total Variable $17,060 $17,706 $28,652 $28,731 $0 $0 $0 $0 $92,150 57.4%
Contribution Margin $14,028 $13,712 $19,106 $21,638 $0 $0 $0 $0 $68,484 42.6%
Period Costs:
Depreciation $4,907 $5,367 $2,787 $3,293 $0 $0 $0 $0 $16,353 10.2%
R&D $446 $446 $966 $966 $0 $0 $0 $0 $2,824 1.8%
Promotions $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 3.2%
Sales $1,600 $1,600 $1,400 $1,400 $0 $0 $0 $0 $6,000 3.7%
Admin $294 $297 $452 $476 $0 $0 $0 $0 $1,519 0.9%
Total Period $8,546 $9,009 $6,904 $7,436 $0 $0 $0 $0 $31,896 19.9%
Net Margin $5,482 $4,702 $12,202 $14,203 $0 $0 $0 $0 $36,589 22.8%

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