Answer:
Instructions are below.
Explanation:
Giving the following information:
The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to 12,700 units.
We weren't provided with enough information to solve the requirement. But, I will provide the general structure:
Sales= (number of units*selling price per unit)=
Total variable cost= (total variable cost per unit*number of units)=
Contribution margin=
Fixed costs= (fixed costs + incremental fixed costs)=
Net operating income
If we want to determine the effect on income without an income statement:
Effect of income= incremental units*contribution margin - incremental fixed costs
Contribution margin= selling price - unitary variable cost
