Salley Corporation produces and sells a single product. Date concerning that pro

Question

Salley Corporation produces and sells a single product. Date concerning that product appear below Per UnitPercent of Sales $180 100% 20% .80% Contribution margin Fixed expenses are $1 133,.000 per month. The company is currently selling 9,000 units per month Management is unit veriable cost by $7. Since the new component would increase the features of the company's product the 500 units What should be the overall effect on the company's monthly net operating income of this change? marketing manager predicts thet monthly sales would incresse by O decrease of $68.500 O decrease of $5.500 O increase of $68.500 O increase of $5.500 O Type here to search 6 3

Explanation / Answer

Calculate overall effect on net income :

so answer is c) Increase of $68500

Sales (500*180) 90000 Less: Variable cost (500*43) (21500) Contribution margin 68500

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.