Question
QUESTION 8 Data for Grammy Co. is shown below: Per Unit % of Sales Selling price $ 65.00 100% Variable expenses 39.00 60% Contribution margin
QUESTION 8
Data for Grammy Co. is shown below:
|
| Per Unit |
| % of Sales |
Selling price |
| $ 65.00 |
| 100% |
Variable expenses |
| 39.00 |
| 60% |
Contribution margin |
| $ 26.00 |
| 40% |
|
|
|
|
|
Fixed expenses are $73,000 per month and the company is selling 4,300 units per month.
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,700 and the monthly sales volume increases by 100 units? If you conclude it will decrease, enter your response as a negative number with a minus sign. Do not include a dollar sign in your response.
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