Question
Cullumber orthotics company distributed a specialized ankle support that sells for $40.the company's variable costs are $30 per unit. Fixed costs total $360000 each year.
Cullumber orthotics company distributed a specialized ankle support that sells for $40.the company's variable costs are $30 per unit. Fixed costs total $360000 each year.
Calculate contribution margin ratio %.
If sales increase by $41000 per year by how much should operating income increase?
Last year Cullumber sold $39000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price,compbined with a $52000 increase in advertising will result in a 25% increase in sales volume over last year.
compute the projected income.
Should Cullumber implement the price reduction?
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