Question - Dandy many factoring company produced and sold 30000 deaths during the last year at an average price of $25 per units.
Units variable costs were the following
Variable manufacturing cost $9
Variable selling and administrative costs 6
Total $15
Total fixed cost were $250,000. There was no year in work in process inventory. If Dandy had spent an additional $15,000 on Advertising then sales would have increased by $30,000. If trendy had made this investment what change would have occurred in Dandy's pretax profit.
A. $3000 decreases
B. 4200 increase
C. 3000 increase
D. 4200 decrease