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Q3. Legaard Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin. Per Unit Percent of
Q3. Legaard Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin. Per Unit Percent of Sales $170 100% 102 $ 68 60% 40% Fixed expenses are $220,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $11,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,500 units. Do you think the manager has suggested a good idea? Show your work
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