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You are the Chief Operating Officer of Noble Co. The results of the most recently complete fiscal year are below. Revenues $3,540,000 Variable Costs 2,124,000
You are the Chief Operating Officer of Noble Co. The results of the most recently complete fiscal year are below. Revenues $3,540,000 Variable Costs 2,124,000 Contribution Margin 1,416,000 Fixed Costs 725,000 Operating Income $ 691,000 The sales price per unit averaged $250. You are working with your colleagues considering ways in which the company can increase its Revenues and Operating Income for the coming year. The Vice President of Sales & Marketing has proposed that the Company increase its spending on social media by $50,000 per month and reduce the sale price per unit for each of the company's products by 5%. She believes these changes will increase the number of units sold by 20%. Calculate the impact of these proposed changes on Operating Income. Also, state whether you would implement this recommendation noting the factors that support your decision
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