Use share point analysis to determine how much Ben's should increase their administrative expenditures this year in order to reach their goal.
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Ben's Tasty Rigatoni is looking to improve its market share in the pasta industry. The company reported sales revenue of $2,560,000 last year in an industry of $16,000,000 across all brands. The costs of the goods sold over the
past year was $800,000. Also, Ben's Tasty Rigatoni spent $200,000 in administrative expenses while the industry as a whole (including Ben's) spent $1,500,000. Suppose they would like to achieve a market share of 20% in the upcoming year. Use share point analysis to determine how much Ben's should increase their administrative expenditures this year in order to reach their goal.
A.$102,000
B. $60,000
C. $90,000
D. $48,000
E. $12,000
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