Business, 18.05.2021 18:50 jeto32

The following information is available for a company that produces two types of strollers, standard and deluxe. Standard Deluxe Total Sales volume (units) 4,000 3,500 7,500 Revenue $96,000 $147,000 243,000 Direct materials 12,000 17,500 29,500 Direct labor 16,000 24,000 40,000 Marketing & Sales 20,000 28,500 48,500 Contribution Margin $48,000 $77,000 $125,000 Fixed manufacturing costs $24,000 Fixed marketing costs $18,000 Fixed administration costs $16,000 Profit $67,000 The company wants to shift its sales mix to selling 3,000 standard units and 4,500 deluxe units by using a new ad campaign that will increase its current fixed marketing costs by 25%. How would the company’s profit change as a result? Group of answer choices Increase by $5,500 Decrease by $7,500 Increase by $6,500 Decrease by $17,500 Increase by $135,000

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