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What the maximum amount that the company can pay

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Reference no: EM133188358

Question - Mantine Inc has prepared the following budget data:

Sales Volume 20,000

Unit Selling Price P750

Unit Variable Expenses P450

Fixed Manufacturing Expenses P1,200,000

Fixed Selling & Administrative Expenses P400,000

An advertising agency claims that an aggressive advertising campaign would enable the company to increase its unit sales by 25%. What the maximum amount that the company can pay for advertising and obtain a net operating income of P5,350,000?

Reference no: EM133188358

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