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Richard was a marketing major in university. He believes that the sales volume can be increased only by intensive advertising and promotional campaigns. He therefore
Richard was a marketing major in university. He believes that the sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Maria's: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.20, and (3) increase fixed selling expenses by $36,800. Richard quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Calculate Richard's break-even point in dollars and units. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to O decimal places, eg. 5,275.) Break-even point in sales $ Break-even point in units Question Part Score --16 Determine which plan should be accepted. should be accepted. Richard was a marketing major in university. He believes that the sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Maria's: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.20, and (3) increase fixed selling expenses by $36,800. Richard quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Calculate Richard's break-even point in dollars and units. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to O decimal places, eg. 5,275.) Break-even point in sales $ Break-even point in units Question Part Score --16 Determine which plan should be accepted. should be accepted
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