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LekaFEV [45]
3 years ago
7

If a company sells its smart phones for $400 and the phones have a COGS of $250, how many additional phones would the company ha

ve to sell if it decided to spend an extra $150,000 on advertising to promote the phones
Business
1 answer:
Cloud [144]3 years ago
8 0

Answer:

Units to be sold= 1,000

Explanation:

Giving the following information:

Selling price= $400

COGS= $250

Increase in costs= $150,000

<u>To calculate the number of units to be sold to cover the incremental costs, we need to use the following formula:</u>

Units to be sold= increase in costs/ contribution margin per unit

Units to be sold= 150,000 / (400 - 250)

Units to be sold= 1,000

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