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E. Refer to the original data. The president does not want to change the sales price. She wants to increase sales commissions (a variable expense)
E. Refer to the original data. The president does not want to change the sales price. She wants to increase sales commissions (a variable expense) by $1 PER UNIT. She thinks this move, combined with some increase in advertising (a fixed expense), would cause annual sales volume (IN UNITS) to double. By how much could advertising be increased with net income remaining unchanged at $48,000? Week 7: Weekly Check-in Assignment Cost-Volume-Profit Relationships Henry Hawkins Industries income statement for the most recent year is given below. Per Unit Percentage 100% Total $800,000 560.000 240,000 Sales (40,000 units) Variable expenses Contribution margin Fixed expenses Net income $20 14 $6 70% 30% 192.000 $48,000
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