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Sales(9600 balls) $ 240000 Variable expenses $ 180000 Contribution Margin $ 60000 Fixed expenses $ 54000 Net Operating income $ 6000 The company is discussing
Sales(9600 balls) $ 240000
Variable expenses $ 180000
Contribution Margin $ 60000
Fixed expenses $ 54000
Net Operating income $ 6000
The company is discussing the construction of a new, automated manufacturing plant. The new plant would increase production and sales by 200 soccer balls, reduce the variable expense per ball by $4.75, but it would cause the fixed per expenses per month to rise to $100,000. If the new plant is built, what would be the overall effect on the company's monthly net operating income?
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