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i. The manager of Sanafi Company estimates that by providing a sales commission of $1 per unit, and spending an additional $5,000 on advertising the
i. The manager of Sanafi Company estimates that by providing a sales commission of $1 per unit, and spending an additional $5,000 on advertising the products each month, the unit sales will increase by at least 12%. Should the company go with the managers decision? Comment on your answer.
ii. How many units of products the company must sell in order to attain a profit of $55,000?
2. Sanafi Company manufactures a single product. In the month of August, the company manufactured 13,000 units and sold all of them for a total of $845,000. Variable costs related to manufacturing is $11.50 and variable costs related to selling & admin is another $4. The total fixed expense for the company is $345,000Step by Step Solution
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