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Daisy feels that they should make a higher quality product by using better materials. The new materials will increase the cost per unit by $2.00
Daisy feels that they should make a higher quality product by using better materials. The new materials will increase the cost per unit by $2.00 but will increase their sales volume by 20%. They will also increase their fixed advertising cost by %5,000 to let customer know of the better quality. Mickey the sales manager feels that if they decrease the selling price by 10% and increase advertising by $5,000 they will sell an additional 10,000 units. Write a memo to Daisy telling her which option if any you would recommend. show calculation.
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