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hello, d) The sales manager is convinced that, by increasing the quality of the ingredients (increasing variable costs to $0.30) and by advertising
hello,
d) The sales manager is convinced that, by increasing the quality of the ingredients (increasing variable costs to $0.30) and by advertising the increased quality (advertising dollars would be increased by $100,000), sales volume could be doubled. He has also indicated that a price increase would not affect the ability to double sales volume as long as the price increase is not more than 20% of the current selling price. Compute the selling price that would be needed to achieve the goal of increasing operating income by 50%. Is the sales manager's plan feasible? What selling price would you choose? Why?
