MAMA24GO
Sep 14, 2012, 07:58 AM
Barker company has a single product line called a Zet. The company normally produces and sells 80000 Zets each year for 40 dollars per unit. Assume the company has sufficient capacity to produce 100000 zets each year without any increase in fixed manufacturing overhead costs. The company could increase sales by 25% above the present 80000 units each year if it were willing to increase the fixed selling expenses by $150000 . Would the increased fixed selling expenses be justified?