1 points Save Answer Houpe Corporation produces and sels a single product Data c

Question

1 points Save Answer Houpe Corporation produces and sels a single product Data concerning that product appear below Fer Usit Percent of Sales Belling price Varlable expenaes Contribition sargin Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month The marketing manager would lke to out the seling price by $7 and increase the advertising budget by $28,000 per month. The marketing monthly sales by 500 units. What should be the overall effect on the manager predicts that these two changes would increase company's monthly net operating income of this change? decrease of $17,500 increase of $17,500 decrease of $24,500 increase of $38,500

Explanation / Answer

Answer:-

The company's net opreating income will decrease by $ 24500 ($98000-$73500) of this change.

Explanation:-

Houpe Corporation Statement of Net opreating Income (Proposed change) Particulars Amount $ Sales value 6500 units*$133 per unit 864500 Less:- Variable cost 6500 units*$42 per unit 273000 Contrbution 591500 Less:- Fixed cost 518000 Net opreating income 73500

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.