Question
Data concerning Atlanta Corporation's single product appear below: Monthly fixed expenses $87,000 Current unit sales per month 1,000 Per unit information Selling price $160.00 100%
Data concerning Atlanta Corporation's single product appear below:
Monthly fixed expenses $87,000
Current unit sales per month 1,000
Per unit information
Selling price $160.00 100%
Variable expenses $48.00 30%
Contribution margin $112.00 70%
The company will begin using a higher quality raw material.
This change will increase the quality of the product.
The variable cost per unit will increase by $28.
Sales will increase by 400 units per month.
What should be the overall effect on monthly net operating income of this change?
Group of answer choices
$5,600
$3,600
$6,600
$9,600
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