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Business, 02.03.2020 17:11 drinkingfood

Baldwin Company's product Best has Fixed Costs of $50,000, capacity of 10,000 units, sales of 15,000 units, selling price per unit of $25, 1stshift labor costs per unit of $10, and a contribution margin ratio of 50% prior to overtime due to using the second shift. Baldwin is considering investing in a Marketing program that costs $22,000 and is projected to increase sales volume by 10%. All else constant, if Baldwin makes this decision based on a minimum acceptable ROI in the first year of 50% for the project, should they invest in this marketing program?

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