Unit 2 Individual Project 1 Unit 2 Individual Project Student’s Name American Intercontinental University Unit 2 Individual Project 2 Introduction The company manufactures a trendy brand of basketball shoes. As a producer of a popular brand, the primary goal is to maximize profit generation by understanding the relationship of costs, production volume, selling price, and behavior of costs. It is the objective of a firm to determine the optimal level of output in production to know the breakeven units or sales or to calculate the number of units needed to sell to meet the targeted level of income set by the company. Currently, the firm sells monthly 1,000 pairs of these branded shoes in the market with a selling price of $100 apiece. According to the cost analysis, the variable cost of producing the branded basketball shoes accounts for 40% of sales, while the fixed costs incurred in the manufacturing process are $35,000 per month. The firm's director for marketing is requesting to increase the company's marketing budget to $1,500 per month, increasing the monthly total fixed cost if approved. This marketing budget increase is dedicated to enhancing the marketing campaign on the West Coast, which is one of the targeted areas of the marketing department. The marketing director estimates that the budget increase in marketing activities will boost the demand to 50%. To assess if the estimates and claims of an increase in demand are accurate, the firm needs to evaluate the ...
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