You are working as a cost accountant of Proctor and Gamble company’s detergents manufacturing division. Currently...

You are working as a cost accountant of Proctor and Gamble company’s detergents manufacturing division. Currently the demand of Ariel is 550 units a month. The company is selling one Ariel package at a price of 100. The variable cost of ne unit is 62 and fixed cost is 15000. The company is planning to design a new sales promotional campaign that will cost the company 7000 extra. The company is forecasting that by starting new sales promotional campaign company’s sales will get raised by 25000.

(i) Should company Implement this alternative?

(ii) Prepare breakeven chart of the company to depicit breakeven point of the company in dollars and in units.

Expert Solution

Implement or Not Decision:

Break Even Chart

ekkarill92 answered 2 years ago

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