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please answer me these two questions as soon as possible. a, 72% b, 39%. s are 25 344 units. The 1-0 per unit. The product's
please answer me these two questions as soon as possible.
a, 72% b, 39%. s are 25 344 units. The 1-0 per unit. The product's current sales are 35,200 umits and is margin of safety as a percentage of sales is d. 61%. 32. Ramsey Corporation produces and sells a single product. Data concerning that product appear below Selling Price Variable Expenses Contribution Margin $120 72 60% 40% S 48 The company is currently selling 4,000 units per month. Fixed expenses total $166,000 per month. Management is considering using a new component that would increase the unit variable cost by $2. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 200 units. What would be the overall effect on the company's monthly net operating income? a. Increase of $1.200 b. Decrease of $9,200. c. Increase of $9,200 d. Decrease of $1,200. 3 3. White Corporation produces and sells a single product. Data concerning that prodact appear below: Per UnitPercent of Sales $150 100% Selling Price Variable Expenses 90 Contribution Margin $ 60 -60% 40% The company is currently selling 2,000 units per month. Fixed expenses total $106,000 per month The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $5,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What would be the overall effect on the company's monthly net operating income if thes two changes are implemented? a. Increase of $31,000. b. Decrease of $31,000. c. Increase of $103,000. d. Increase of $1,000Step by Step Solution
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