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Zenith Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to

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Zenith Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65.000 units. Prepare the Contribution Margin Income Statements and answer the question: Should Zenith reduce it's per unit sales price and pay for the additional advertising

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