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How much must sales increase in a month to justify

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Reference no: EM132553154

L?&M Manufacturing produces a single product that sells for? $16. Variable? (flexible) costs per unit equal? $11.20. The company expects the total fixed ?costs to be? $7,200 for the next month at the projected sales level of? 20,000 units. In an attempt to improve? performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.

Question 1: Suppose that? L&M Manufacturing's management believes that a? $1,600 increase in the monthly advertising expense will result in a considerable increase in sales. How much must sales increase in a month to justify this additional? expenditure?

A. 500 units

B. 334 units

C. 200 units

D. None of the above is correct.

Reference no: EM132553154

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