Steve's baked goods makes and sells cookies. At a production and sales level of 5,000...
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Accounting
Steve's baked goods makes and sells cookies. At a production and sales level of 5,000 cookies, Steve has the following costs per cookie:
DM $.20 DL $.40 Var MOH $.50 Fix MOH $1
Steve has no variable selling and the only other costs are fixed at $5,000 per month. Steve sells cookies for $4 each. If Steve increased his advertising by $3,000, Steve would be able to sell 1,500 more cookies. How much better off would Steve be by doing the advertising? (show positive numbers as they are, and negative with a -)
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