Question
Data concerning hands sanitizers corporation single product appear below: Selling price = 90$ Variable Expense = 72$ contribution margin = 18$ Fixed expense = 84,000$
Data concerning hands sanitizers corporation single product appear below:
Selling price = 90$
Variable Expense = 72$
contribution margin = 18$
Fixed expense = 84,000$
the company currently selling 3000 units per month.
the manager believes that 10,000$ increase in monthly advertising budget would result increase 2,500 unit in monthly sales.
1- what should be the overall effect on the company monthly net operating income of the change?
2- What is the breakeven point in dollars and in units if we accept the marketing manager proposal? (according to the new proposal)
3- If we want to achieve 5,000$ net income how much units should we sell ? (according to the new proposal)
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