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Assume that each year a company nomaly produces and selts 30 000 units of its only product for $40 per unit. The company's average
Assume that each year a company nomaly produces and selts 30 000 units of its only product for $40 per unit. The company's average unt costs at this level of activity are given below Direct materials Variable manufacturing read Flees eanufacturing overhead Variable selling expenses Fised selling expenses Total cost per unit $9.50 10.00 2.00 5.00 1.70 4.50 $13.50 The company's relevant iange of production is 70.000-100000 uns bearves thut spending an aocotone $195.000 on adversuing would increase unit sales by 25% whats the tnancial advantage vintage) of spending the ional money on ang Mute Croce 350000 O O O $10,000 $45.000
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