I need an opening paragraph for the scenario below. In the introduction, paraphrase the below...
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Accounting
I need an opening paragraph for the scenario below. In the introduction, paraphrase the below scenario using the proper format and describe what steps you would take to analyze and evaluate the advertising directors proposal using break-even analysis. Include definitions of key accounting terms throughout your introduction. Be sure to reference other scholarly research to support the definitions provided and list references.
You are the plant accountant for a company that makes a popular brand of basketball shoes. Currently, your company sells 1,000 pairs of shoes each month for $100 apiece. The variable costs are 40% of sales, and the fixed costs are $35,000/month. The company's advertising director is asking for an increase in her marketing budget of $1,500 per month. She plans to enhance her marketing campaign in a targeted area of the West Coast. She estimates that the additional advertising will result in a 50% increase in demand. For this situation, the additional advertising costs are considered a fixed cost. What is the impact of this request on the company's operating income? On the other hand, the production manager believes that this increase in sales could put pressure on the production line. He estimates that there will need to be a $2.00 increase in labor costs per unit
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