Walker Company has current sales of $600,000 and variable costs of $360,000. The company's fixed costs are equal to $200,000. The marketing manager is considering a new advertising campaign, which will increase fixed costs by $10,000. She anticipates that the campaign will cause sales to increase by 5 percent as a result.
What will be the impact of Walker's income? I know it will increase, but I need to know by how much?
Thanks!
2007-10-15
17:35:05
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3 answers
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asked by
Anonymous
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Other - Business & Finance