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C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 350 bikes is as
C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 350 bikes is as follows Sales $175.000 Less: Variable Expenses 64,750 Contribution Margin 110,250 Less: Fixed Expenses 127.000 Net Operating Income $83,250 in 2021. C-Cubed is thinking that it can increase its sales to 375 if it takes the following actions: 1) cuts its sales price by $100 per bike and 2) switches to a more fixed pay structure for its sales people by eliminating the $35 per unit sales commission and increasing its selling salaries by $5,000. What would be profit impact of these changes? Multiple Choice 520 625 decrease $30,000 decrease S25.250 decrease $21500 decrease
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