Question
What is the profit impact if RBC can increase unit sales from 500 to 540 by increasing the monthly advertising budget by $10,000? What is
What is the profit impact if RBC can increase unit sales from 500 to 540 by increasing the monthly advertising budget by $10,000? What is the profit impact if RBC can use higher quality raw materials, thus increasing variable costs per unit by $10, to generate an increase in unit sales from 500 to 580? What is the profit impact if RBC: (1) cuts its selling price $20 per unit, (2) increases its advertising budget by $15,000 per month, and (3) increases unit sales from 500 to 650 units per month? What is the profit impact if RBC: (1) pays a $15 sales commission per bike sold instead of paying salespersons flat salaries that currently total $6,000 per month, and (2) increases unit sales from 500 to 575 bikes?
Please fill in the tables to show work as you solve for profit impact of each part. Just so I can understand your work better, I'm a little lost on this
Cost, Volume, Profit Analysis (CVP) Sales Variable Expense = Contribution Margin Fixed Expenses Net Operating Income 400 Units 500 Units Per Unit Percent $ 200,000 $ 250,000 $ 500 100% 120,000 150,000 300 60% 90.000 100,000 200 40% 90,000 90.000 20.000 What is the profit impact i RBC can increase unit sales from 500 to 540 by increasing the monthly advertising budet by $10.000? 500 Units 540 Units Incremental Analysis $ 250,000 Expected Total CM: Sales Variable Expense - Contribution Margin 150,000 100,000 Present Total CM Fixed Expenses 90.000 Net Operating income 20,000 Change in Fixed Exp: Profit Impact: What is the profit impact i RBC can use higher quality raw materials, tus increasing vars ble costs per unit by $10.to nerate an increase in unt sales from 500 to 580? 500 Units 580 Units Incremental Analysis Expected Total CM: Sales S 250,000 Variable Expense 150,000 = Contribution Margin 100,000 Present Total CME Fixed Expenses 80,000 Net Operating income 20.000 Profit Impact: What is the profit impact RBC:(1) cuts its selling price 520 per mi, (2) increases is advertising budget by $15.000 per month and () increases wit sales from 500 650 unts per month? 500 Units $ 250,000 650 Units Incremental Analysis Expected Total CM: Sales Variable Expense 150,000 Present Total CM = Contribution Margin Fixed Expenses 100,000 80,000 Net Operating income 20,000 Change in Fixed Exp: Profit Impact: What is the profit impact RBC:(1) pays a $15 sales commission per bke sold instead of paying sa e persons flat salaries that current total $6.000 per month and (2) increases unit sales from 500 b 575 bkes? 500 Units 575 Units Incremental Analysis Expected Total CM: Sales $ 250,000 Variable Expense 150.000 100,000 Present Total CM = Contribution Margin Fixed Expenses 80,000 Net Operating Income 20,000 Change in Fixed Exp: Profit ImpactStep by Step Solution
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