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Lowman Inc

Question 104

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Lowman Inc. sells a product with a sales price of $25 per unit, variable costs of $10 per unit, and total fixed costs of $100,000. Lowman is looking into implementing an aggressive advertising campaign that will cost $45,000.
By what amount do sales dollars need to at least increase by in order for the company's overall profits to not decrease by having the advertising campaign?

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The contribution margin needs to increas...

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