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Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose management believes that a $75,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales to justify this additional expenditure must increase by Select one: a. 1,550 units b. 1,339 units c: 1,698 units d. 1,500 units
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