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Zeeb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 280 100% Variable
Zeeb Corporation produces and sells a single product. Data concerning that product appear below: |
Per Unit | Percent of Sales | ||
Selling price | $ | 280 | 100% |
Variable expenses | 126 | 45% | |
Contribution margin | $ | 154 | 55% |
Fixed expenses are $354,000 per month. The company is currently selling 4,900 units per month. | ||||
The marketing manager believes that a $23,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales
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