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reen Ocean Company sells T-shirts. The business's profit calculation for last year is shown here: Sales revenue (3000 units @ $15) $45,000 Less: Variable costs
reen Ocean Company sells T-shirts. The business's profit calculation for last year is shown here: Sales revenue (3000 units @ $15) $45,000 Less: Variable costs (21,000) Contribution margin $24,000 Less: Fixed Costs (18,000) Profit $6,000 To increase its market share, Green Ocean decided to reduce the selling price by $2 while increasing its fixed advertising cost by $3,500. After those changes are made, they expect to sell 3500 T-shirts next year. The variable cost per t-shirt will be unchanged
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