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B D E 1 Pro lockey Company makes and sells hockey sticks. You have been provided with the following cost and other information: 2 Selling

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B D E 1 Pro lockey Company makes and sells hockey sticks. You have been provided with the following cost and other information: 2 Selling price per unit $ 30.00 3 Variable expenses per unit S 24.30 4 S Anmal Fixed Expenses s 100.000 6 7 8. Required 9 THE FOLLOWING REQUIREMENTS ARE INDEPENDENT OF EACH OTHER in A B C D E 10 11 12 1. The owner's wife has suggested that the company increase its advertising by $10,000 per year. 13 If the net effect of the increased advertising was an increase in sales of 2.000 units at the original 14 price of $30, what would be the increase or decrease) of this suggestion on operating income? Increase advertising $ 10.000 Increase in sales units 2.000 15 16 17 18 2. If the raw materials increased by $2 per unit, what would the selling price have to be per hockey 19 stick to achieve the same contribution margin ratio as originally stated in the problem? Increase in raw materials per unit $ 2 20 21

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