Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 110 100% 77 70 $ 33 30% Fixed expenses a
Posted: Sun Jul 03, 2022 1:23 pm
company is selling 3,500 units per month.
Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8 monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? (Do not round intermediate calculations.) Net operating income Req 18 by
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req ZA Reg 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses highter- quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by
Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 110 100% 77 70 $ 33 30% Fixed expenses are $82,000 per month and the Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8 monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? (Do not round intermediate calculations.) Net operating income Req 18 by
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req ZA Reg 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses highter- quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by