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13. Rori's Bridal Shop (RBS) had a disappointing month of October. RBS sells bridal gowns for $300 per gown. Here are the October operating results
13. Rori's Bridal Shop (RBS) had a disappointing month of October. RBS sells bridal gowns for $300 per gown. Here are the October operating results Per UnitTotal Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Operating Profit $300 $30,000 200 20,000 $100 $10,000 8,000 $2,000 To improve financial performance in November, RBS will i. Raise the price of bridal gowns to $400 per unit. ii. Make higher quality gowns, which will increase per unit variable costs by 20%. ii. Increase advertising by S4,400. RBS believe doing these things will increase the number of gowns sold by 40%. What will be the increase or decrease in RBS operating profit by making these changes? a. Increase net operating profit by $10,400 b. Decrease net operating profit by $10,000 c. Increase net operating profit by $2,400 d. Increase net operating profit by $8,000 e. No impact on net operating profit
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