Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per UnitPercent of SalesSelling price$140 100%Variable expenses 42 30%Contribution margin$98 70%Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month.The marketing manager believes that a $14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A. increase of $700
B. decrease of $700
C. decrease of $14,000
D. increase of $14,700
Answer: A
You might also like to view...
The following are human relations principles that convey appropriate tone to customers:
A) use I-centered phrasing to be sure they understand you. B) talk to people as groups, not as individuals to avoid offending. C) express ideas in ways that convey "what's in it for me" to customers. D) be aggressive in phrasing in order to convey the importance of your message.
The simplest way to enter a foreign market is through direct investment
Indicate whether the statement is true or false
One of Ted's responsibilities is to regularly review HR practices to make sure they all focus on the same objectives. In other words, Ted needs to ensure __________ alignment.
A. measurement B. capacity C. horizontal D. vertical
Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. This is an example of
A. a severance leave. B. a preretirement program. C. family-friendly benefits. D. policies recommended by Social Security.