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problems G,H,

BONUS g. What would the new breakeven sales in units and dollars be if the change in (f) above were implemented? Would you agree with Clinton that the strategy is beneficial to the company? BONUS h. As an alternative to the strategy in (f) above, the company is considering improving the quality of the product, which would raise the variable cost per unit to $15. In addition, advertising of the product would be required at a cost of $20,000. This amount is in addition to the fixed costs of $360,000. The selling price would be increased to $40 per 5 unit. At this price, it is expected that sales volume would be reduced by 20 percent. What would the effect on the company's income be of the proposed changes? BONUS BONUS g. What would the new breakeven sales in units and dollars be if the change in (f) above were implemented? Would you agree with Clinton that the strategy is beneficial to the company? BONUS h. As an alternative to the strategy in (f) above, the company is considering improving the quality of the product, which would raise the variable cost per unit to $15. In addition, advertising of the product would be required at a cost of $20,000. This amount is in addition to the fixed costs of $360,000. The selling price would be increased to $40 per 5 unit. At this price, it is expected that sales volume would be reduced by 20 percent. What would the effect on the company's income be of the proposed changes? BONUS

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