all part of the same problem
Required Information [The following information applies to the questions displayed below) Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit and fixed expenses total $33,100 per month (Unless otherwise stated, consider each requirement separately) c. Calculate the monthly operating income (or loss) at a sales volume of 5,350 units per month. (Do not round Intermediate calculations.) Answer is complete but not entirely correct. Operating loss $ 31,100 Required Information [The following information applies to the questions displayed below.) Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $33,100 per month (Unless otherwise stated, consider each requirement separately) d. Calculate monthly operating Income (or loss) if a $2 per unit reduction in selling price results in a volume increase to 8,200 units per month. (Do not round Intermediate calculations.) Check All That Apply Does the increase in volume move fixed expenses into a new relevant range? Does the increase in volume move variable expenses into a new relevant range? Are variable expenses really linear? Are fixed expenses really linear elwise stated, corsider each requirement separately f-1. Calculate the monthly operating Income (or loss) that would result from a $1 per unit price increase and a $6,000 per month Increase in advertising expenses, both relative to the original data. Assume a sales volume of 5,350 units per month. (Do not found Intermediate calculations.) 1-2. Is the increase in advertising expense justified by the price increase? Yes No Chademy of Management is considering a change in the sales force compensation plan. Currently each of the firm's two salespeople's poida salary of $2.500 per month 9-1. Calculate the monthly operating Income for loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.95 per unit, assuming a sales volume of 5,350 units per month (Do not round Intermediate calculations.) 9-2. Calculate the monthly operating Income for loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.95 per unit, assuming a sales volume of 6.400 units per month. (Do not round Intermediate calculations. Losses should be indicated by a minus sign.) h-1. Assuming that the sales volume of 6,400 units per month achieved in party could also be achieved by increasing advertising by $1,000 per month Instead of changing the sales force compensation plan. What would be the operating Income or loss? (Do not round Intermediate calculations. Losses should be indicated by a minus slgn.) h-2. Which strategy would you recommend? O Plan to change the sales force compensation Plan to increase advertising expensos
