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The company controller has set the revenue target for 2021 at $10,467,600 (or 57,200 pairs). He believes an additional marketing cost of $405,000 for advertising

The company controller has set the revenue target for 2021 at $10,467,600 (or 57,200 pairs). He believes an additional marketing cost of $405,000 for advertising in 2021, with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2021 if the additional $405,000 is spent and the revenue target is met.

***the answer is NOT $. 891,000

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Question 32 Martin Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2020: Variable costs (per pair of shoes) Direct materials $42.00 Direct manufacturing labour 18.00 Variable overhead (manufacturing, marketing, distribution, customer service, and administration) 23"\" Total variable costs $83.00 Fixed costs Manufacturing $2,580,000 Marketing, distribution, and customer service 495,000 Administrative 755,000 Total xed costs $3,830,000 Selling price per pair of shoes $183 Expected revenues, 2020 (51,300 units) $9,387,900 Income tax rate 40% Ir (a) Your answer is correct. Calculate the projected operating income before tax for 2020. Operating income before tax $ 1300000 SHOW ANSWER LINK TO TEXT LINK TO TEXT If 0!) Your answer is correct. Calculate the break-even point in units for 2020. Break-even point 33300 units V (c) E Your answer is incorrect. Try again. The company controller has set the revenue target for 2021 at $10,467,600 (or 57,200 pairs). He believes an additional marketing cost of $405,000 for advertising in 2021, with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2021 if the additional $405,000 is spent and the revenue target is met. Operating income

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