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Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: Sales (118,000 units at $5 per unit) 590,000 Variable expenses 472,000 Contribution
Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: | ||||||
Sales (118,000 units at $5 per unit) | 590,000 | |||||
Variable expenses | 472,000 | |||||
Contribution Margin | 118,000 | |||||
Fixed expenses | 125,000 | |||||
Net operating loss | (7,000) |
3. The older brother is convinced that a 15% increase in the selling price, combined with an increase |
of $25,000 in advertising budget will increase units sold by 35%. Determine the Net Operating Income if these |
if these changes are adopted. (Round to whole percent) |
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