Tony Manufacturing Produces a Single Product That Sells for $80

question 207

Multiple Choice

Tony Manufacturing produces a single product that sells for $80.Variable costs per unit equal $30.The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 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 $75,000 increase in the monthly advertising expense will result in a considerable increase in sales.Sales must increase by ________ to justify this additional expenditure?

• A) 1,698 units
• B) 1,500 units
• C) 1,550 units
• D) 1,339 units

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Definitions:

Software Program

A set of instructions or code written by programmers to perform specific tasks on a computer or other devices.

Repetitive Tasks

Tasks that are repeated many times, often in a predictable manner, which can usually be automated or streamlined to improve efficiency.

Automatically

Refers to the capability of a system or process to operate or carry out functions without human intervention.

Forms

Structured documents with blank fields that users can fill in with data, often used for applications, orders, or surveys.