Tony Manufacturing produces a single product that sells for $100 Variable costs per unit equal $35. The company expects fotal fixed costs to be $82,000 for the next month at the projected sales level of 2.800 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales Sales must increase by to justify this additional expenditure? (Round the final answer up to nearest whole unit) OA 1,385 units OB. 000 units OC. 1.256 units OD. 1.202 units
Tony Manufacturing produces a single product that sells for $100 Variable costs per unit equal $35. The company expects fotal fixed costs to be $82,000 for the next month at the projected sales level of 2.800 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales Sales must increase by to justify this additional expenditure? (Round the final answer up to nearest whole unit) OA 1,385 units OB. 000 units OC. 1.256 units OD. 1.202 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tony Manufacturing produces a single product that sells for $100. Variable costs per unit equal $35. The company expects fotal fixed costs to be $82,000 for the next month at the projected sales level of 2.800
units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $90,000 increase in
the monthly advertising expense will result in a considerable increase in sales Sales must increase by
to justify this additional expenditure? (Round the final answer up to nearest whole unit)
OA 1,385 units
OB. 000 units
OC. 1.256 units
OD. 1.262 units
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