Queens co is considering starting a multimedia advertising

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Reference no: EM13603406

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

Required:

1. What are the CM and VC ratios?

2. What is the breakeven point in sales revenue?

3. What was the margin of safety last year?

4. 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.

Reference no: EM13603406

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