Sales mix

charger are compatible only with the Matrix cell phone. Sales prices and variable costs for each product are as follows:

overall corporate income for the upcoming year.

The alternatives that follow would maintain the historical sales mix ratios:

Increase corporate advertising by $$1,800,000.$ The company estimates doing so would increase total unit sales to $3,960,000.$

Decrease the price of cell phones to $$70.$ The company estimates doing so would increase cell phone sales to $5,670,000$ units and have no effect on the unit selling price of the other products.

Determine the effect of each proposal on budgeted profits for the coming year. Analyze each option separately. Which alternative is preferred, and what is the relative financial benefit of that alternative?

Incremental benefit of choosing option one: $

Incremental benefit of choosing option two: $

Choose option number

resulting in additional profits of :

over the other option.