QUESTION 45 ABC Company sells phone covers. Last year the company sold 42,000 covers with a total contribution margin of $231,000. Now the company is considering a plan to increase sales volume by 20% by upgrading the quality of its product. The new phone cover design will require more expensive materials that would increase variable costs by $1.20 per cover, but the marketing department believes that the price per cover can be increased by $1.00. The company will begin a new advertising campaign to assure it will meet the increased sales target. If management wants to increase current income by at least $10,000, what is the maximum incremental amount that could be spent on the new advertising campaign? $27,720 $36,200 $10,080 $35,050 $26,120