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university of southern california Operations And Supply Chain Management Assignment Help - Company’s budgeted


Question - The following information pertains to Torasic Company’s budgeted income statement for the month of
June 2011:
Sales (1,200 units at $250) $300,000
Variable cost 150,000
Contribution margin $150,000
Fixed cost 200,000
Net loss ($50,000)
Required
(a) Determine the company’s breakeven point in both units and dollars.
(b) The sales manager believes that a $22,500 increase in the monthly advertising expenses will
result in a considerable increase in sales. How much of an increase in sales must result from
increased advertising in order to break even on the monthly expenditure?
(c) The sales manager believes that an advertising expenditure increase of $22,500 coupled with a
10% reduction in the selling price will double ...Read More

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