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Rumberger, Inc. sells two products: X and Y. Data concerning the company for July follow: Product X Product Y Sales $ 235,000 $ 335,000 Variable
Rumberger, Inc. sells two products: X and Y. Data concerning the company for July follow: |
Product X | Product Y | ||||
Sales | $ | 235,000 | $ | 335,000 | |
Variable expenses | $ | 67,000 | $ | 117,000 | |
Traceable fixed expenses | $ | 73,000 | $ | 143,000 |
In addition, common fixed expenses of $87,000 were incurred in July.Suppose advertising for Product Y is increased by $16,500 per month, which results in increased sales of $83,000 per month. This should have the following effect on Product Ys monthly segment margin: (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole number.) |
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