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Unformatted text preview: A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. 1. Proposals for Sales Promotion Campaign May 13, 2010 Tennis Shoe Walking Shoe Differential revenue from proposals $550,000 $600,000 Differential costs of proposals: Direct materials $100,000 $132,000 Direct labor 40,000 54,000 Variable factory overhead 25,000 36,000 Variable sel ing expenses 35,000 30,000 Sales promotion expenses 125,000 125,000 Differential cost of proposals $325,000 $377,000 Differential income from proposed sales promotion campaign $225,000 $223,000 2. Should the proposal for the sales campaign be accepted? No Explain (select from the drop-down list): The manager has used ful unit cost instead of differential cost in the analysis. Instructions...
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- Winter '08