Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone help me with this question asap please? Information for Drone On Limited is shown below: Selling price Variable expenses Per Unit $ 1,250

image text in transcribed

can someone help me with this question asap please?

Information for Drone On Limited is shown below: Selling price Variable expenses Per Unit $ 1,250 625 Percentage of Sales 100% 50% Contribution margin $ 625 50% Total fixed expenses are $78,000 per month, and the company is selling 1,700 drones per month. Required: 1. The marketing manager argues that a $7,000 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? O Yes O No 2. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $110 per unit. The marketing manager believes the higher-quality product would increase sales by 20% per month. Should the higher- quality components be used? Yes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

22nd Edition

324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844

More Books

Students also viewed these Accounting questions