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Cincinnati Supply Corp, a supplier to Kraft Foods, produces and sells a single product. Data conceming that product appear below Per unit Selling price
Cincinnati Supply Corp, a supplier to Kraft Foods, produces and sells a single product. Data conceming that product appear below Per unit Selling price $ 180 Variable expense 4p Contribution Margin 36 $144 Fixed expenses are $1,133,000 per month. The company is currently selling 9,000 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 company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change? O increase of $5.500 O decrease of $68.500 O increase of $68.500 O decrease of $5.500 600 Previous
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