Data concerning Dorazio Corporation's single product appear below: Per UnitPercent of SalesSelling price$160 100%Variable expenses 48 30%Contribution margin$112 70%Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?
A. decrease of $33,600
B. decrease of $5,600
C. increase of $33,600
D. increase of $5,600
Answer: D
You might also like to view...
Access controls protect databases against destruction, loss or misuse through unauthorized access
Indicate whether the statement is true or false
Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75 per unit. The monthly fixed costs are $8500. Its current sales are 29,000 units per month. If the company wants to increase its operating income by 20%, how many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.)
A) 130,500 glass vases B) 8500 glass vases C) 34,182 glass vases D) 5182 glass vases
An operating system like Windows or Linux is an example of the ________ component of an information system.
A. hardware B. software C. tangible D. physical E. virtual
Employees who do not have the protection of the NLRA:
A. Are prohibited by law from joining a union. B. May strike or picket but could be terminated for doing so. C. Are prohibited by law from any collective action including strikes and pickets. D. Are allowed to join a union but cannot strike.