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Question - Dandy many factoring company produced and sold 30000 deaths during the last year at an average price of $25 per units.

Units variable costs were the following

Variable manufacturing cost $9

Variable selling and administrative costs 6

Total $15

Total fixed cost were $250,000. There was no year in work in process inventory. If Dandy had spent an additional $15,000 on Advertising then sales would have increased by $30,000. If trendy had made this investment what change would have occurred in Dandy's pretax profit.

A. $3000 decreases

B. 4200 increase

C. 3000 increase

D. 4200 decrease

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  • Reference No.:- M93095110
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