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Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:
Per Unit | Percent | |||||||
Sales price | $ | 460 | 100.00 | |||||
Variable costs | 237 | 51.52 | ||||||
Unit contribution margin | $ | 223 | 48.48 | |||||
Assume that Staley Co. is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. If an $16,200 increase in the advertising budget would increase monthly sales by $59,700, the new level of operating income (B) for Staley Co. would be: (Do not round intermediate calculations.)
Multiple Choice
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$62,512.
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$64,512.
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$61,512.
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$65,512.
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$60,512.
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