A construction mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000...
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A construction mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000 7,253,600 VARIABLE COSTS 90.67 FIXED COSTS 538,000 NET PROFIT (BEFORE TAXES) | 208,400 MARGINAL RATIO 9.33 1. If the company increases the advertisement cost of the fixed cost portion by $40,000, what earnings are required to generate the profit goal of $256,667? What is the percentage change in work quantity? (2 points) 2. The company decides to increase price by 1%, decrease the variable cost ratio by 2%, and cut $8,000 from the fixed cost portion of the budget. What earnings are required to generate the profit goal of $256,667? What is the percentage change in work quantity? (4 points)
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