Sales in units	10,000
Sales in Dollars	1,000,000
Total VC	450,000
Total FC	200,000
1. Calculate C/M in units and dollars
2. If the marketing manager suggests that additional advertising of $50,000 would increase sales
by 10%, would you agree with that recommendation?
3. If the marketing manager comments that the quality of the product is poor and that by spending $4
more on a key raw material, sales would increase by 5%. Would you agree with that recommendation.
4. Going back to the original data, calculate Margin of safety.