Tony Manufacturing Produces a Single Product That Sells for $100

question 13

Multiple Choice

Tony Manufacturing produces a single product that sells for $100. Variable costs per unit equal $45. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 3,000 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 $85,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by ________ to justify this additional expenditure?

• A) 850 units
• B) 1,546 units
• C) 1,412 units
• D) 1,419 units

---

Definitions:

Function as a Team

The process where individuals work together cohesively towards a common goal or objective.

Communication Levels

Various degrees or layers of communication complexity, ranging from intrapersonal to interpersonal, and extending to public or mass communication.

Example

A specific case or instance used to illustrate or explain a concept, principle, or process.

Translation Limitations

The constraints and challenges faced during the process of translating text or speech from one language to another, often related to cultural nuances, idioms, and expressions.