Answer the Following Questions Using the Information Below

question 10

Multiple Choice

Answer the following questions using the information below:
Bush Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.
-Suppose that management believes that a $24,000 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)320 units
• B)1,120 units
• C)240 units
• D)None of these answers are correct.

---

Definitions:

Complexities

The state or quality of being intricate or complicated, refers to the various difficult factors or features involved in a situation.

Subject

The topic or main focus of a conversation, document, or study.

Large Group

A significant number of individuals gathered together, typically classified as more than a handful, often for a specific purpose or event.

Respondents

Individuals who answer or reply to a survey, questionnaire, or other means of inquiry.