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Units sold 1 0 0 million units Revenue 2 0 0 Variable costs Materials 3 0 Direct labor ( manufacturing , sales ) 4 0
Units sold million units
Revenue
Variable costs
Materials
Direct labormanufacturingsales
Opearational costsmanufacturinginventory,delivery
Other variable costs
Margin on Sales
Fixed Costs
Marketing and advertising
Research and development
Other fixed costseg head office
Net margin
QUESTION a: What would be the absolute change in net margin if Pepita Disco increased advertising by and as a result had higher sales?
QUESTION b: What would be the absolute change in net margin if Pepita Disco increased the price by with an elasticity
QUESTION c: What would be the absolute change in net margin if Pepita Disco increased the price by with an elasticity
QUESTION d: What would be the absolute change in net margin if Pepita Disco lowered the price by with an elasticity
QUESTION e: What would be the absolute change in net margin if Pepita Disco motivated salespeople to increase unit sales volume by with an elasticity
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