Question $17$

Kamryn Corporation produces and sells a single product. Data for that product are:

Management is discussing increasing the price to $$560$ to cover an increase in fixed expenses of $$80,000.$ 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?

Selected Answer:

Increase of $$23,500$

Answers:

Increase of $$23,500$

Decrease of $$80,000$

Increase of $$80,000$

Decrease of $$23,500$