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Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $480,000 annually
Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $480,000 annually - The president expects sales to increase by 14% next year. By how much should operating income incroci 5-a. Refer to the original data. Assume that the company sold 22,500 units last year. The sales manager is convinced that a 14% reduction in the selling price, combined with a $69,000 increase in advertising expenditures, would cause annual sales in units to increase by 30%. Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. (Round "Per Unit" answers to 2 decimal places.) Answer is not complete. KLEIN COMPANY Contribution Margin Income Statement Last Year 22,500 units Proposed units Total Per Unit Total Per Unit 0 0.00 0 0.00 $ 0 S 0
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