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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 9.00

Zeeb Corporation

16. Zeeb Corporation produces and sells a single product. Data concerning that product appear below:

 

 

Per Unit

Percent

of Sales

Selling price

$ 150

100%

Variable expenses

60

40%

Contribution margin

$ 90

60%

 

Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month.

The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

 

Answer

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17. The contribution margin ratio of Thronson Corporation's only product is 69%. The company's monthly fixed expense is $455,400 and the company's monthly target profit is $41,400.

Determine the dollar sales to attain the company's target profit.

 

Answer

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Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 10:08 PM My Price 9.00

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