Your company’s sales are 50,000 units. The unit variable cost is $12. Your markup percent on sales is 40% and your fixed costs are $100,000.

1. What is your profit / loss?

You are thinking of increasing your advertising by $200,000. Based on previous data, you know that for every dollar increase in advertising your sales will go up by $2.

2. Should they go for it or not?

1 answer

Ask a New Question or answer this question.

Similar Questions

Your company’s sales are 50,000 units. The unit variable cost is $12. Your markup percent on sales is 40% and your fixed costs
1. 1 answer
Your company’s sales are 50,000 units. The unit variable cost is $12. Your markup percent on sales is 40% and your fixed costs
1. 0 answers
Explain why fixed and variable costs per unit decline as sales volume increases. Suppose a company had a variable cost/unit of
1. 1 answer
For the current year ending March 31, Ewok Company expects fixed costs of $740,000, a unit variable cost of $55, and a unit
1. 1 answer