Answer
Advertising Cost = 875,000 - 108,450 = 766,550
Work Step by Step
Net Income = Expected Sales - Total Costs (including Advertising Cost)
Advertising Cost = Expected Sales - Net Income
Cost Accounting (15th Edition)
by Horngren, Charles T.; Datar, Srikant M.; Rajan, Madhav V.
Published by
Prentice Hall
ISBN 10:
0133428702
ISBN 13:
978-0-13342-870-4
Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 100: 3-36(6)
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