Homework Answers
Fixed costs remain constant during the relevant range
Hence, increase in operating income will be equal to increase in contribution margin less additional cost
= (20-9)*350 -3000
= $850
ROI = Operating Income/Investment
= 850/3000
= 28.33%
Maximum Charge = $3850- 12%*3000 = $3,490
CM Ratio = Contribution Margin/Sales
= 11/20
= 55%
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You are pitching a marketing proposal to a company that sells electronic equipment. For a particular...
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please complete the entire question, try and use the same
format if possible
Ch You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8,200 units You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe...
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