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The following table shows the current data for camera brand Sales-$150000 -$3000/unit Variable expense-$40000- $800/unit Fixed expense-$15000 - $2200/unit Option A:increase advertising cost of cameras
The following table shows the current data for camera brand
- Sales-$150000 -$3000/unit
- Variable expense-$40000- $800/unit
- Fixed expense-$15000 - $2200/unit
- Option A:increase advertising cost of cameras by $1000 which will increase monthly sales of camera by 20units.
- Option B: decrease selling price of camera from $3000 per units to $2500per unit which will increase monthly sales of cameras by 30 units question: as a sensible manager who wants to maximize the profits for camera brand which one of the two options you will choose .you must show all the working /calculations that help you to make your decision (hint:use CVP technique)
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Financial Statement Analysis And Security Valuation
Authors: Stephen H Penman
4th Edition
0073379662, 9780073379661
