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show work What would be the absolute changes in net margin if Doggie Treats were to examine interrelationships: a) Reduce research and development 10% and,
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What would be the absolute changes in net margin if Doggie Treats were to examine interrelationships: a) Reduce research and development 10% and, as a result, unit sales decreased 5% ? b) Reduce marketing and advertising 10% and, as a result, unit sales decreased 5% ? c) Reduce variable costs per unit 10% and, as a result, unit sales decreased 10% ? a) Reduce research and development 10% and, as a result, unit sales decreased 5% ? b) Reduce marketing and advertising 10% and, as a result, unit sales decreased 5% ? c) Reduce variable costs per unit 10% and, as a result, unit sales decreased 10% ? \begin{tabular}{|l|l|} \hline Units Sold & 500 \\ \hline Revenue & 2000 \\ \hline Variable Costs & 300 \\ \hline Materials & 400 \\ \hline Direct Labor (manufacturing, sales) & 200 \\ \hline Operational costs (manuf./ inventory, delivery) & 300 \\ \hline Other variable costs & 800 \\ \hline Margin on sales & 150 \\ \hline Fixed costs & 150 \\ \hline Marketing and advertising & 200 \\ \hline Research and development & 300 \\ \hline Other fixed costs(e.g., head office) & \\ \hline Net margin & 150 \\ \hline \end{tabular}Step by Step Solution
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