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Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the
Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling $540 $200 $1,150,000 5,500 units Management is discussing increasing the price to $580 to cover an increase in fixed expenses of $82,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? A. Increase of $82,000 B. Decrease of $96,200 C. Increase of $96,200 OD. Decrease of $82,000
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