Company sell in order to justify increased advertising costs, Accounting Basics

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Company sell in order to justify increased advertising costs

XYZ Manufacturing produces car parts. The company has a variable cost per unit of $100 and fixed costs of $100,000. The company sells each car part for about $125. Recently, the company is considering increasing its advertising by $50,000 in order to sell more car parts. How many additional parts must the company sell in order to justify the increased advertising costs?

a. 2,000 units

b. 4,000 units

c. 6,000 units

d. Cannot be determined from the information provided.

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Accounting Basics: Company sell in order to justify increased advertising costs

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Accounting Basics: Company sell in order to justify increased advertising costs

Reference No:- TGS065618

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Contribution margin per service call

Q : What can al do to demonstrate large salary is reasonable

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Q : Major determinants of price elasticity of demand

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Accounting Basics: Company sell in order to justify increased advertising costs

Reference No:- TGS065618

Recent Questions Asked Accounting Basics

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Q : What can al do to demonstrate large salary is reasonable

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