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The EV45924 company has provided the following cost, price, and sales data: $ Per Unit 222 45 Selling price Variable expenses Contribution margin $ 177
The EV45924 company has provided the following cost, price, and sales data: $ Per Unit 222 45 Selling price Variable expenses Contribution margin $ 177 The EV45924 company is currently selling 6,200 units per month. Fixed expenses are $898,000 per month. The marketing manager would like to cut the selling price by $19 and increase advertising spending by $33,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 18%. What would be the overall effect on the EV45924 company's monthly net operating income of this change? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice 44,768 dollars 38,240 dollars -10,752 dollars 25,528 dollars
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