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Question 5 Safeena company which produces one product has the below information available for the past month. Sales revenue (6000 units @ $12.00 per unit)

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Question 5 Safeena company which produces one product has the below information available for the past month. Sales revenue (6000 units @ $12.00 per unit) Variable expenses Contribution margin Fixed expenses Operating income $72,000 54,000 18,000 12,000 $6.000 Required: If fixed advertising cost is to be increased by $1.500 and sales price is to be reduced by 51, that is expected to increase sales by 1,500 units. What will be the effect of these changes on net operating income of the company? (Prepare a new CM income statement) (5 marks) Arial 3 (12pt) -- T- T'T TTTT Paragraph %DOQ fx Mashups

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