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

A. 9.9%

B. 8.5%

C. 11.4%

D. 11.9%

2021 Income Statement 2021 Common (Product Name:) Na Na Na S27,820 528,182 S48,995 S51,656 S0 S0 $0 $156,653 100.0% riable Costs S0 S0 52,848 52,941 9,908 9,170 S12,283 12,762 S19,189 19,927 S388 $15,377 16,008 $29,473 S29,486 $24.866 $64.162 $1,314 $90,342 15.996 41.0% 0.8% 57.7% Material nventory Carry otal Variable S248 S302 376 $12,443 12,176 S19,522 S22,170 $66.311 42.3% argin eriod Costs S0 54,44754,907 $2,913 3,420 983 51,300 51,300 $1,300 1300 51,400 S499 58,061 58,525 $7,052 7,585 $15,687 52,824 55,200 56,000 51,512 $31,223 10.0% 1.8% 3.3% 3.8% 1.06 19.9% G&A: R&D 983 Promotions Sales 51,600 S269 51,600 S272 51,400 S473 otal Period Margin 54,382 53,652 12,46 14,588 $35,088 22.4% finitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the that was sold. Inventory Carry Cost the cost to carry unsold goods in inventory. EBIT Short Term 1 LongTerm Interest Taxes Profit Sharing Net Profit 54,732 $30,356 53,501 $10,266 55.808 $216 $10,567 3.0% 19.4% 2.2% 6.6% 3.7% 0.1% 6.7% ciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D epartment expenditures for each product. Admin. Administration overhead is estimated at 1.5% sales. Promotions: The promotion budget for each product Sales: The sales force budget for ach product. Other. Charges not included in other categories such as Fees, Write Offs, and money paid to investment bankers and broke firms to issue neww OM. The fees include ght experience when you sell capacity or liquidate inventory as the result of eliminating a he liquidation of capacity or inventory. EBIT: Earmings Before Interest and Taxes. Short Term otes that have become due, and emergency loans. Long Term Interest: Interest paid on tocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Variable Margins 2008 Digby n line. If the amount appears as a negative amount, then you actually made money on nterest Interest expense based on last years current debt, including short term debt, long term