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San Diego State University Operations And Supply Chain Management Assignment Help - Production

Question - Red Rock, Inc. mines and distributes various types of rocks. Most of the company's rock is sold to contractors who use the product in highway construction projects. Aracely Hudson, company president, believes that the company needs to advertise to increase sales. She has proposed a plan to the other managers that Red Rock, Inc. spend $92,000 on a targeted advertising campaign. The company currently sells 26,000 tons of aggregate for total revenue of $5,420,000. Other data related to the company's production and operational costs follow: Direct labor $1,460,000 Variable production overhead 230,000 Fixed production overhead 380,000 Selling and administrative expenses: Variable 53,000 Fixed 327,000 Required: A. Compute the break- ...Read More

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