A Company with Sales of $80,000 and Variable Expenses of $40,000

question 123

True/False

A company with sales of $80,000 and variable expenses of $40,000 should spend $12,000 on increased advertising,if the increased advertising will increase sales by $22,000.
CM ratio = 50% so incremental CM = 22,000 *.5 which is less than $12,000.

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Definitions:

Generalised Anxiety Disorder

A persistent condition marked by prolonged anxiety and concern over general life events, items, and circumstances without specific reasons.

Phobic Disorder

A type of anxiety disorder characterized by an excessive and irrational fear response to a specific object, situation, or activity, leading to avoidance behavior.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states within a single individual.

Dissociative Amnesia

A psychological condition characterized by temporary memory loss, often associated with traumatic events, excluding forgetfulness from organic disorders.