Question
per unit percent of sales selling price $230 100% variable expenses $69 30% contribution margin $161 70% fixed expenses are $628,000 per month. the company
per unit percent of sales
selling price $230 100%
variable expenses $69 30%
contribution margin $161 70%
fixed expenses are $628,000 per month. the company is currently selling 5000 units per month
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45000 per month the marketing manager predicts that these two changes would increase monthly sales by 800 units.
what should be the overall effect on the companys monthy net operating income of this change?
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Fundamental Accounting Principles Volume 1
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
15th Canadian Edition
1259259803, 978-1259259807
