Help me solve this please q3
The Cocoa World Candy Company produces a single product: a chocolate almond bar that sells for $0.40 per bar. The variable costs for each bar (sugar, chocolate, almonds, wrapper, and labor) total $0.20. The total monthly fixed costs are $75,000. Last month, bar sales reached 1 million. However, the president of Cocoa World Candy Company was not satisfied with its performance and is considering the following options to increase the company's profitability: 1. Increase advertising. X 2. Increase the quality of the bar's ingredients and simultaneously increase the selling price. Requirements 3. Increase the selling price with no change in ingredients Read the requirements. Requirements (a) The sales manager is confident that an intensive advertising campaign will double sales volume. If the company president's goal is to increase this month's profits by 40% over last month's, what is the maximum amount that can be spent Requirement (a) The sales manager is confident that an intensive advertising campaign will double on advertising that doubles sales volume? last month's, what is the maximum amount that can be spent on advertising that doubles sales volun (b) Assume that the company increases the quality of its ingredients, thus increasing variable costs to $0.45 per bar. By how much must the selling price per unit be Enter the formula you will use to solve for maximum amount that can be spent on advertising in the q increased to maintain the same breakeven point in units? (c) Assume next that the company has decided to increase its selling price to 0.60 per bar with no change in advertising or ingredients. Compute the sales volume in units that would be needed at the new price for the company to earn the same Now calculate the amount that can be spent on advertising by solving for the unknown advertising c profit as it earned last month