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The next two questions refer to the following fictional financial statement from Sharpie Markers, who sells their markers directly to consumers for $2/marker. Revenue: $500,000

The next two questions refer to the following fictional financial statement from Sharpie Markers, who sells their markers directly to consumers for $2/marker.

Revenue: $500,000

Plastic: $200,000

Ink: $1,000

Advertising: $5,000

Overhead: $1,000

Depreciation: $25

How many additional pens would Sharpie have to sell to maintain their current contribution to the organization if they invest $25,000 in advertising?

A.

None of the above, but I could calculate this with the information I am given.

B.

20,904

C.

None of the above, I cannot calculate this with the information I am given.

D.

836

E.

21,259

Assume Sharpie wants to launch a Holly Jolly promotion, where they would discount their pens by 10%. How many more pens would they have to sell to justify this promotion from a contribution perspective?

A.

None of the above, I cannot calculate this with the information I am given.

B.

25.13% more pens

C.

20.08% more pens

D.

None of the above, but I could calculate this with the information I am given.

Assume Sharpie wants to do both the Holly Jolly Promotion AND invest in a $10,000 sales promotion campaign? How many more pens would they to sell to justify both of these efforts?

A.

None of the above, I cannot calculate this with the information I am given.

B.

10,246

C.

None of the above, but I could calculate this with the information I am given.

D.

10,041

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