Craylon Manufacturing produces a single product that sells for $100.Variable costs per unit equal $25.The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units.In an attempt to improve performance,management is considering a number of alternative actions.Each situation is to be evaluated separately.Suppose that management believes that a $10,000 increase in the monthly advertising expense will result in a considerable increase in sales.Sales must increase by ________ to justify this additional expenditure.
A) 123 units
B) 134 units
C) 243 units
D) 143 units

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The Answer of Craylon Manufacturing produces a single product that sells for $100.Variable costs per unit equal $25.The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units.In an attempt to improve performance,management is considering a number of alternative actions.Each situation is to be evaluated separately.Suppose that management believes that a $10,000 increase in the monthly advertising expense will result in a considerable increase in sales.Sales must increase by ________ to justify this additional expenditure.
A) 123 units
B) 134 units
C) 243 units
D) 143 units

Craylon Manufacturing Produces a Single Product That Sells for $100