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having alot of trouble on this study assignment please help Company XYZ has $2,500,000 in fixed costs. It sells products at an average selling price

having alot of trouble on this study assignment please help image text in transcribed
Company XYZ has $2,500,000 in fixed costs. It sells products at an average selling price of s5o. Average variable costs amount to 60% of selling price. The marketing department proposes spending $500,000 on an advertising campaign which will result in increased volume of between 10,000 and 30,000 units Determine: 1. Breakeven volume before the proposed ad campaign 2. Breakeven volume if ad campaign undertaken 3. Minimum and maximum incremental profit if ad campaign undertaken 4. Would you support the proposal? Why or why not? 5. What level of sales would be necessary to achieve a profit of $500,000 assuming the advertising campaign were undertaken? If the sales volume in #5 above were achieved exactly, what would be the margin of safety? 6

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