Instructions Kankakee Cosmetics Company is planning a one-month campaign for Dec

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Instructions Kankakee Cosmetics Company is planning a one-month campaign for December to promote sales of one of its two cosmetics pro of $139,897 has been budgeted for advertising. contests, redeemable coupons, and other promotional activities. The assembled for their possible usefulness in dociding which of the products to select for the campaign ducts A total following data have been Moisturizer Perfume 555.39 559,46 Unit selling price unit production cos : Direct materials $13.93 493 4.90 4.00 27.76 14.90 5.50 4856 59.08 Direct labor Variable factory overhead Fixed factory overhead 1Total unit production costs Unit variable selling expenses 0 : unit fixed selling expenses 3.07 6.09 $2127 16.10 1207 54944 Total unit.cos O Type here to search

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Part-1 Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. If Mosturizer promoted if Perfume Promoted Differential Effect over alternative 2 Additional Units expected to be sold Unit price 22000 Unit price 20000 2000 Sales Revenue 55.39 1218580 59.46 1189200 29380 less: Variable Cost (Fixed cost are not relevant) 9.08 199760 13.93 278600 -78840 3.03 66660 4.93 98600 -31940 3.07 67540 4.9 98000 -30460 16.1 354200 14.9 298000 56200 Less: Promotional Expense 139897 139897 0 Additional Operating income 390523 276103 114420 Part-2 Should promote Mosturizer as it has additioanl income effect of 114420 over perfume. Part-3 Decision is not correct as fixed cost for the decsison is irrelevant for both of the product as these fixed cost will be incurred even if additional units not sold

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