Description of this paper

Edward wants to determine the monthly level of sales volume he needs to generate

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solution


Question

Question;A. Edward wants to determine the monthly level of sales volume he needs to generate $24,000 in profit after paying taxes of 40 percent. His product sells for $32 each and his incremental cost is just $24 each. He does need to cover the monthly rent of $16,000.B. If the economy gets bad and sales decline, what level of monthly sales volume will Edward need to just break even?C. Edward believes that if he spends $6,000 per month in advertising costs, he can raise the selling price of his product to $34. Is this a good idea? Support your answer.

 

Paper#41941 | Written in 18-Jul-2015

Price : $21
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