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You are at a company meeting, where there is a discussion on a product - specifically what if analysis and the impact of change in
You are at a company meeting, where there is a discussion on a product - specifically "what if" analysis and the impact of change in certain variables. Management is considering some changes to the product. Currently, this product has the following information: Unit sales Selling price per unit Variable cost per unit Total fixed cost 6,000 units $35 $20 $25,000 Management wants to know what the impact on operating income will be if contribution margin increases by 10% and fixed costs decrease by 20% and all other variables stay the same
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