QUESTION 16 (3 marks) The following information is for Action Toys Company for the month of June: 3 points ACHON LLOYD Company Contribution Income Statement For the month of June Total 5150 000 80,000 70,000 Sales (400 Space Cowboys Less: Variable Expenses Contribution Margin Per Uni $375 200 S775 Less: Fixed Expenses 145,000 Operating Income 525,000 To increase sales the sales manager would like to reduce the selling price by $20 per space cowboy and increase the advertising budget by $15,000 per month Thes argues that is these two actions are taken, unit sales will increase by 50% to 600 space cowboy's per month. Should the changes be made? For the toolbar, press ALT+F10 (PQ or ALT+FN+F10 (Mac). BI U S Paragraph Arial 10pt I X 2 FC Mch E E xX ABC The +] T 23 X PE 03 ky Save All Riswers Click Save and Submit to save and submit. Click Save All Answers to save all answers