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Data for JenCe are below: Fixed costs are $40,000 per month and the company is selling 4,000 units per month. a) Complete the chart by
Data for JenCe are below: Fixed costs are $40,000 per month and the company is selling 4,000 units per month. a) Complete the chart by calculating the variable costs per unit and contribution margin per unit. b) The marketing manager argues that a $7,000 increase in the monthly advertising budget would increase monthly sales by $12,000. Is it a good decision to increase the advertising budget? It is a(Bad/Good) decision because operating income will (Increase/Decrease) for the month by $? c) Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $4. The marketing manager believes the higher quality product would increase the number of units sold by 5% per month. Is it a good decision to use higher-quality components? month by $
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