A company typically earns a contribution margin ratio of

Assignment Help Accounting Basics

Reference no: EM13611704

A company typically earns a contribution margin ratio of 25%and has current fixed costs of $80,000. The general manageris considering spending an additional $20,000 to do one of thefollowing:
1. Start a new ad campaignthat's expected to increase salesrevenue by 5%.
2. License a new computerized ordering system that is expectedto increase the comtribution margin ratio by 30%.
Sales revenue for the coming year was initially forecast toequal $1,200,000(without implementing either option)
Question: by what percentage would sales revenue need toincrease to make the ad campaign as attractive as the orderingcenter?

Reference no: EM13611704

Questions Cloud

A corporation is trying to determine how long it takes for : a corporation is trying to determine how long it takes for oneproduct to pass through the production process. the

With the charge in place what charge is now present on the : an initially uncharged hollow metallic sphere with radius of 5 cm has a small object with a charge of 10 microc

Maxwell corp is coming to the market witha new offering of : maxwell corp. is coming to the market witha new offering of 450000 shares of stock at 22 to the public. maxwell will

Two point charges are placed along a horizontal axis with : two point charges are placed along a horizontal axis with the following values and positions 3.0 microc at x 0 cm and

A company typically earns a contribution margin ratio of : a company typically earns a contribution margin ratio of 25and has current fixed costs of 80000. the general manageris

Before receiving the result the physician assigned his : the rapid test is used to determine whether someone has hiv the virus that causes aids. the false-positive and

Carnot refrigerator which removes heat from a cooled space : a carnot heat engine operates between a heat source at 1200 k and the environment at 300 k. the net work produced by

A piece of wire 22 m long is cut into two pieces one piece : a piece of wire 22 m long is cut into two pieces. one piece is bent into a square and the other is bent into a circle.a

Newdex has net income of 3000000and 1000000 shares : newdex has net income of 3000000and 1000000 shares outstanding. it needs to raise 5000000 in funds for a new asset. its

User Account

All Pages