7. Roy Corporation's financial data is reported as follows: Percent of Sales Per Unit Selling price...
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7. Roy Corporation's financial data is reported as follows: Percent of Sales Per Unit Selling price . Variable expenses.. Contribution margin. $140 28 $112 100% 20% 80% The monthly sales of Roy Corporation is 8,000 units. The company also incurres $719,000 fixed expenses per month. The CEO of the company asserts that a $20,000 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? Show your calculations. 7. Roy Corporation's financial data is reported as follows: Percent of Sales Per Unit Selling price . Variable expenses.. Contribution margin. $140 28 $112 100% 20% 80% The monthly sales of Roy Corporation is 8,000 units. The company also incurres $719,000 fixed expenses per month. The CEO of the company asserts that a $20,000 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? Show your calculations.
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Related Book For
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans
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