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Information for Drone On Limited is shown below:
Per Unit Percentage of Sales
Selling price $1,200 100%
Variable expenses 900 75%
Contribution margin $300 25%
Total fixed expenses are $35,000 per month, and the company is selling 1,600 drones per month.
Required:
Problem 1. The marketing manager argues that a $5,300 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased?
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