Answer the Following Questions Using the Information Below

question 68

Multiple Choice

Answer the following questions using the information below:
Martha Manufacturing produces a single product that sells for $80. Variable costs per unit equal $32. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.
-Suppose management believes that a $16,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by how much to justify this additional expenditure?

• A)200 units
• B)334 units
• C)500 units
• D)None of these answers are correct.

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Definitions:

Multicultural Policy

A governmental approach that recognizes, appreciates, and supports the cultural diversity within a society, often to promote social cohesion and inclusion.

Criticism

The practice of analyzing, evaluating, or judging the merits and faults of a work, policy, or idea.

Canada

A country in North America, characterized by its vast landscape, multicultural population, and as having a parliamentary democracy and a constitutional monarchy.

Population Transfer

The forced movement of a large group of people from one region to another, often used as a tool for political or social engineering.