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Jones corp has provided the following cost, price, and sales data: Jones is currently selling 8,000 units per month. Jones Fixed expenses are $880,000 per
Jones corp has provided the following cost, price, and sales data:
Jones is currently selling 8,000 units per month.
Jones Fixed expenses are $880,000 per month.
Jones sales manager is planning to cut the selling price by $28 and increase advertising spending by $60,000 per month.
Jones manager above believes that these changes would increase monthly sales quantity by 20%.
Q: What would be the overall effect on Jones monthly net operating income of this change?
A.13,800 dollares
B.-31,200 dollares
C.-15,768 dollares
D. -63,840 dollares
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