Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 58 (3 points) Polly Company manufactures and sells a product called GO. The cost structure of company's manufacturing, selling, and administrative costs are
Question 58 (3 points) Polly Company manufactures and sells a product called "GO". The cost structure of company's manufacturing, selling, and administrative costs are as follows: Total Fixed Costs Per Month Variable Cost per Unit of GO Manufacturing $435,037 Selling $159,462 Administrative $165,095 $2.94 $0.57 $0.11 Current selling price per unit of GO is $6.50. The production capacity is up to 400,000 units per month and currently company is manufacturing and selling 320,000 units of GO per month. Because of decline in sales in recent month, company wants to increase advertising by $90,000. What should be the minimum expected increase in sales units in order to justify this advertising proposal? Example of Answer: 4350 No space, dollar sign, or decimal points
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started