Assume that Bene Petit sells only family-sized meals and that the average price is$5.00 per serving. Variable manufacturing costs are $1.75 per serving for customermeals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00per customer delivery (with an average order size of four meals or 16 servings in eachdelivery). Variable delivery expenses for donated meals are $200 per delivery, with anaverage of 1,000 donated meals or 4,000 servings in each delivery. Other variableselling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000.Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If themarketing campaign is expected to cost $9,000, how much must total sales increase is necessaryto justify the expenditure?Multiple ChoiceO $18,000O $15,000O $20,000O $12,000

The total sales increase necessary to justify the expenditure of the marketing campaign can be…

Answered: Assume Bene Petit plans to launch a new…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If the marketing campaign is expected to cost $9,000, how much must total sales increase is necessary to justify the expenditure?