Question
Soul mates, Inc. is planning a one month campaign for July to promote sales of one of its two shoe products. Total of eight 8000
Soul mates, Inc. is planning a one month campaign for July to promote sales of one of its two shoe products. Total of eight 8000 has been budgeted for advertising contests redeemable coupons and other promotional activities. Following data has been assembled for their proper possible usefulness and deciding which of the products to select for the campaign unit selling price for tennis shoes 54, walking shoes, 59, direct materials, 10 and 13, direct labor, three and four variable factory overhead, two and three fixed factory overhead six and seven total unit production costs 2127 unit variable selling versus 18 and 16 unit fixed selling expenses, 10 and seven operating income per unit five and nine. No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 25,000 additional units of tennis shoes or 21,000 additional units of walking shoes could be sold without changing the unit selling price of either product. Prepare a differential analysis as of June 19 to determine whether to promote tennis shoes
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