Pannel Company has a current production level of 20,000 unit…

Pannel Company has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing – fixed 0.20 Marketing/distribution – variable 0.40 Current monthly sales are 18,000 units. Bully Company has contacted Pannel Company about purchasing 1,500 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Pannel Company’s change in operating profits if the special order is accepted?

Bull Dog Manufacturing produces a single product that sells…

Bull Dog Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Suppose management believes that a $75,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by ________ to justify this additional expenditure?