Question
The EV76394 company has provided the following cost, price, and sales data: Per Unit Selling price $ 224 Variable expenses 46 Contribution margin $ 178
The EV76394 company has provided the following cost, price, and sales data: Per Unit Selling price $ 224 Variable expenses 46 Contribution margin $ 178 The EV76394 company is currently selling 6,400 units per month. Fixed expenses are $896,000 per month. The marketing manager would like to cut the selling price by $20 and increase advertising spending by $36,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 20%. What would be the overall effect on the EV76394 company's monthly net operating income of this change?
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-6,920 dollars
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44,768 dollars
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38,240 dollars
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-10,752 dollars
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