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Sagot :
Answer:
Increase in units= 1,000 units
Explanation:
First, we need to calculate the current income:
Net income= total contribution margin - fixed costs
Net income= 2,700*(110 - 30) - 84,000
Net income= $132,000
Now, we the company should gain at least the same income to justify the increase in marketing expenses:
Increase in fixed costs= $80,000
Increase in units= increase in fixed cost / unitary contribution margin
Increase in units= 80,000 / 80
Increase in units= 1,000 units
Net income= 3,700*80 - 164,000
Net income= $132,000
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