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The sole product of Milli Company sells for $1?0 and its xed costs total $484,000. Sales are currently 4,800 per month. Variable costs per unit
The sole product of Milli Company sells for $1?0 and its xed costs total $484,000. Sales are currently 4,800 per month. Variable costs per unit currently total 40% of the sales price. Consider the following altematives to increase sales independent of each other. PartA A new marketing campaign is being contemplated that would cost $9,000 per month and have the expected effect of increasing sales per month by 230 units. If this campaign is undertaken, what is the expected effect on monthly income? : Part3 Sales associates currently do not receive any commissions on their sates. The marketing manager thinks that a commission of $12 per sale along with a decrease in the sales department's monthly salary budget of $29,000 would inspire sales associates to sell an additional 270 units per r..___...._____.. month collectively. What would the effect of this plan be on monthly operating income? : of $ u.________________ L______ PartC The product does not contain any gluten, so management would like to start noting this fact on its product's labeling, but in order to do so needs to be sure there is no contamination anywhere in the process. Additional containment procedures would increase variable costs by $10 per unit, and the expected monthly sales increase would be 5?0 units. What would be the effect of this change on the company's monthly income
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