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I. Selling prices of equipment are expected to increase by 15% as the economic recovery begins. The selling price of each maintenance contract is expected
I. Selling prices of equipment are expected to increase by 15% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017 2. Equipment sales in units are expected to increase by 4%, with a corresponding 3. Cost of each unit sold is expected to increase by 3% to pay for the necessary 4. Marketing costs are expected to increase by $250,000, but administration costs 5. Distribution costs vary in proportion to the number of units of equipment sold 4% growth in units of maintenance contracts technology and quality improvements are expected to remain at 2017 levels 6. Two maintenance technicians are to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time 7. There is no beginning or ending inventory of equipment
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