Solution-Is the advertising campaign a good idea

Is the advertising campaign a good idea

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Problem 1: What are the CM and VC ratios?What was the margin of safety last year?

The Queens Company had revenues of $930,000 last year with total variable costs of $399,900 and fixed costs of $307,800.

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Problem 2: What is the breakeven point in sales revenue?

Problem 3: Queens Co. is considering starting a multimedia advertising campaign that is supposed to increase sales by $7,500 per year. The campaign will cost $5,000. Is the advertising campaign a good idea? Explain.

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Is the advertising campaign a good idea

Reference no: EM132644658

Reference no: EM132644658

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