Wilson Company Prepared the Following Preliminary Budget Assuming No Advertising

question 13

Multiple Choice

Wilson Company prepared the following preliminary budget assuming no advertising expenditures: $$\begin{array} { | l | l | } \hline \text { Selling price } & \$ 10 \text { per unit } \\\hline \text { Unit sales } & 100,000 \\\hline \text { Variable expenses } & \$ 600,000 \\\hline \text { Fixed expenses } & \$ 300,000 \\\hline\end{array}$$ Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net income?

• A)$190,000.
• B)$205,000.
• C)$175,000.
• D)$365,000.

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Definitions:

Animal Welfare

The humane and ethical treatment of animals, ensuring their health, comfort, and well-being are prioritized.

Conscious Marketing

An approach to marketing that acknowledges the broader concerns of society, including ethical, environmental, and social issues.

Corporate Social Responsibility

Refers to the ethical obligation of companies to contribute to the betterment of society and minimize negative impacts on the environment and communities.

Business Model

A conceptual framework that outlines how a company creates, delivers, and captures value.