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Cincinnati supply corp a supplier of Kraft foods, produces and sells a single product. Data concerning that product appear below. Selling price per unit $180
Cincinnati supply corp a supplier of Kraft foods, produces and sells a single product. Data concerning that product appear below.
Selling price per unit $180
Variable expense per unit 36
Contribution margin 144
Fixed expenses are 1133000 per month. The company is currently selling 9000 units per month. Management is considering using a new component that would increase the unit variable cost by $7. Since the new component would increase the features of the companys product, the marketing manager predicts that sales would increase by 500 units. What should be the overall effect on the companys monthly net operating income of this change
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