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Recall: Cats'R Us sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue; $20,000 of variable costs; and $10,000 of fixed
Recall: Cats'R Us sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue; $20,000 of variable costs; and $10,000 of fixed costs.
The company decides to invest an additional $2000 in marketing. They believe this investment will increase sales by 1000 units. Is this a good idea? Justify your business decision with calculations.
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