The sales manager believes at 10% increase in variable unit selling expense well increase sales volume. if the sales volume increases by 28.5% what will be the change in net operating income? Is this a good idea, why or why not?
2. The marketing manager believes that an increase in advertising and a better quality materials will increase sales volume by 40%. If this change increases the per unit vairable production cost by 15%, and it fixed selling expenses increase by 12%, what will be the new break-even point in dollar sales? Change in Net Income? is this a good idea, why or why not?
