Question
Please help asap, thanks! Show all calculations for this problem: Per Unit Percent of Sales Selling price $130 100% Variable Cost $78 60% Contribution Margin
Please help asap, thanks!
Show all calculations for this problem:
Per Unit Percent of Sales
Selling price $130 100%
Variable Cost $78 60%
Contribution Margin $52 40%
Shinys Jewelry company is currently selling 4,000 units per month. Fixed expenses are $180,000 per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units.
Based on this what if, calculate the change, if any, to operating income.
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