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5 The Delphinium Corporation sells specialized springs S 6.00 unit S 4.00 Aunit 10,000 units Selling price Variable expense Current Sales Delphinium found that the
5 The Delphinium Corporation sells specialized springs S 6.00 unit S 4.00 Aunit 10,000 units Selling price Variable expense Current Sales Delphinium found that the current net operating income is equal to 15% of current sales. B. C. D, E. What is Delphinium's fixed costs? $51,000 $31,000 $11,000 $9,000 None of the above 6 Emerald Company produces headsets for cell phones. The following unit cost information is available $20 $12 Selling price per headset Variable costs per headset Current annual sales Current fixed costs 80,000 units $360,000 The sales manager proposes that for next year, Emerald should reduce the selling price by 5%, increase the quality ofdirect materials, and increase advertising spending to drastically increase unit sales. Assume the following Required increase in advertising spending New Variable costs per headset Increase in unit sales s 20,000 s 13 40% How will net income be impacted? A. Net income will increase by S B. Net income will increase by S C. Net income will decrease by $ D. Net income will decrease by $ E. None of the Above 32,000 12,000 12,000 32,000
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