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| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
following are abbreviated income statements for two companies, Ainsley and Bard: Ainsley Sales $2,000,000, variable cost (1,400,000) contribution margin $600,000 Fixed cost 0 operating income $600,000, Bard sales $2,000,000 Variable cost 0 contribution margin $2,000,000 fixed cost (1,400,000) operating income $600,000. ainsley and bard produce an identical product and both sell that product at $40. both companies are searching for ways to increase operating income. managers of both companies are considering three identical strategies. consider each of the following strategies, and discuss which company is best situated to adopt that strategy.A. decrease sales price 30 percent to increase sales volume 60 percentB. increase sales price per unit 30 percent, which will cause sales volume to decline by 15 percentc. increase advertising by $200,000 to increase sales volume by 15,000 units
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