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Deffense [45]
3 years ago
11

Requirement 3. The company marketing vice president believes a new sales promotion that costs $ 140 comma 000 would increase sal

es to 220 comma 000 goggles. Should the company go ahead with the​ promotion? Give your reason. Use the contribution margin income statement format to evaluate the sales promotion. Increase in contribution margin Increase in fixed expenses Increase in operating income
Business
1 answer:
gregori [183]3 years ago
8 0

Answer:

Revenue = 240000×49= 11,760,000

Variable manufacturing expense = 240000×20 = 4,800,000

Sales commission expense = 240000×8 =1,920,000

Fixed manufacturing overhead = $2,400,000

Fixed operating expenses = 245,000

Sales promotion = 140000

Profit = 2,255,000

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