The new territory to maintain the firm current net income

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Central Pennsylvania Limestone plans to market its product in a new territory. Management estimates that an advertising and promotion program costing $123,000 annually would be needed for the next two or three years. In addition, a $50 per ton sales commission to the sales force in the new territory, over and above the current commission, would be required. How many tons would have to be sold in the new territory to maintain the firm’s current net income? Assume that sales and costs will continue as in 20x4 in the firm’s established territories. (Round your answer to 1 decimal place.)

Reference no: EM131219688

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