Question
thomas company has total fixed cost of $360,000 and variable cost of $14 per unit. If the unit sales price is reduced from $24 to
thomas company has total fixed cost of $360,000 and variable cost of $14 per unit. If the unit sales price is reduced from $24 to $20, and advertisement is increased by $10,000, sales will increase from $40,000 to $65,000 units. Should thomas reduce its per unit sales price and pay for the additional advertisement? and why?
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2 Principles Of Financial And Managerial Accounting
Authors: Pollard, Sherry T. Mills, Walter T. Harrison Jr.
0136009891, 978-0136009894
