Data concerning Cavaluzzi Corporation's single product appear below:
Fixed expenses are $440,000 per month.The company is currently selling 8,000 units per month.
Required:
The marketing manager believes that an $8,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change? Show your work!
Definitions:
HR Planning
The strategic process of forecasting an organization's future human resources needs and developing plans to meet those needs.
Process Management Skills
The abilities required to effectively oversee and optimize organizational processes to achieve efficiency and quality outcomes.
Contingency Plans
Plans to be implemented when severe, unanticipated changes to organizational or environmental factors completely negate the usefulness of the existing HR forecasting predictions or projections.
Scenarios
Proposed sequence of events with their own set of assumptions and associated program details.
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