Samples corporation would like to use target costing for a new product it is considering introducing. at a selling price of $21 per unit, management projects sales of 20,000 units. the new product would require an investment of $400,000. the desired return on investment is 12%.

the target cost per unit is closest to:

$21.00

$18.60

$23.52

$20.83

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no