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Callicott Corporation produces a product that sells for $120 per unit. The product's current sales are 25, 400 units and its break-even sales are 18,

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Callicott Corporation produces a product that sells for $120 per unit. The product's current sales are 25, 400 units and its break-even sales are 18, 542 units. What is the margin of safety in dollars? $822, 960 $2, 225, 040 $2, 032,000 $3, 048,000 Boenisch Corporation produces and sells a single product with the following characteristics: The company is currently selling 8,000 units per month. Fixed expenses are $406,000 per month. Consider each of the following questions independently. This question is to he considered independently of all other questions relating to Boenisch Corporation. Refer to the original data when answering this question. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change? decrease of $26,000 decrease of $2,000 increase of $2,000 increase of $26,000 This question is to be considered independently of all other questions relating to Boenisch Corporation. Refer to the original data when answering this question. The marketing manager believes that a $10,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? increase of $1, 560 decrease of $1, 560 decrease of $ 10,000 increase of $11, 560 This question is to be considered independently of all other questions relating to Boenisch Corporation. Refer to the original data when answering this question. The marketing manager would like to cut the selling price by $12 and increase the advertising budget by $30,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1, 800 units. What should be the overall effect on the company's monthly net operating income of this change? decrease of $25, 200 increase of $70, 800 decrease of $70, 800 increase of $254, 400

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