Question
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 210 100% Variable
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:
| Per Unit | Percent of Sales | |
|---|---|---|
| Selling price | $ 210 | 100% |
| Variable expenses | 84 | 40% |
| Contribution margin | $ 126 | 60% |
Fixed expenses are $349,000 per month. The company is currently selling 4,400 units per month.
Required:
The marketing manager believes that a $18,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
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Environmental Audit Consultant Because Freaking Awesome Is Not An Official Job Title
Authors: Sophia Brown
1st Edition
1083152106, 978-1083152107
