The selling price is $160 per unit. The contribution margin ratio is 70%. Fixed expenses are $249,984 per month. The company is currently selling 6,600 units. The marketing manager wants to increase...


The selling price is $160 per unit. The contribution margin ratio is 70%. Fixed expenses are $249,984 per month. The company is currently selling 6,600 units.<br>The marketing manager wants to increase sales revenue by $10 per unit and the advertising by $15,000. She thinks that this would cause a 5% decrease in monthly sales.<br>If the changes below are made, what is the net income expected to become?<br>HINT: This is not a change in income question. If you change selling price or variable cost, that change is for all units and you have to start over and include ALL the units now being sold.<br>O $580,476<br>O $514,956<br>O $499,956<br>$702,240<br>O $452,256<br>

Extracted text: The selling price is $160 per unit. The contribution margin ratio is 70%. Fixed expenses are $249,984 per month. The company is currently selling 6,600 units. The marketing manager wants to increase sales revenue by $10 per unit and the advertising by $15,000. She thinks that this would cause a 5% decrease in monthly sales. If the changes below are made, what is the net income expected to become? HINT: This is not a change in income question. If you change selling price or variable cost, that change is for all units and you have to start over and include ALL the units now being sold. O $580,476 O $514,956 O $499,956 $702,240 O $452,256

Jun 03, 2022
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