marketing math

QUESTION 2 Set H - Financial Analysis All the questions in this set are based on the data presented below for Costs and Expenses and in the Tom Brown Legal Clinics Income Statement for 2020 table. Use this data to answer the question shown below. NOTE: It is a good idea to write down your answers for the "$000" columns of the table and keep them handy because you will need those numbers to help fill in the answers for the '% Sales Rev" column. The available financial information for Tom Brown Legal Clinics for 2020 is provided below. The company's advertising agency is recommending that an additional $200,000 be spent in advertising to promote the need for wills. They believe that an additional 20,000 wills could be generated in 2020 by the additional ads. Costs and Expenses Number of wills handled 50,000 Number of divorces handled 150,000 Price charged per will $ 50,00 Price charged per divorce $100.00 Legal and processing cost per will $20.00 Legal and processing cost per divorce $60.00 Office rental $2,000,000 General administration $1,000,000 Advertising $1,500,000 2. Determine the downside, i.e. calculate the company's net profit and profit margin if it spends the extra money but does not generate an incremental 20,000 wills. TOM BROWN LEGAL CLINICS INCOME STATEMENT FOR 2020 Current 2020 Estimate Revised 2020 Estimate (b) $000 % Sales Rev S000 % Sales Rev Sales Revenue 17,500 100.0 100.0 3,000 17.1 Fixed Costs 10.000 57.2 Variable Costs 1,500 8.6 Expenses ?? 17.1 Net Profit 3,000 QUESTION Money uutuve TOM BROWN LEGAL CLINICS INCOME STATEMENT FOR 2020 Current 2020 Estimate Revised 2020 Estimate (b) $000 % Sales Rev $000 % Sales Rev Sales Revenue 17,500 100.0 100.0 Fixed Costs 3,000 17.1 Variable Costs 10,000 57.2 Expenses 1,500 8.6 ?? Net Profit 3,000 17.1 QUESTION: What is the Revised 2020 estimate for the Expenses in the %Sales Rev column? 9.2 9.7 10.8