Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. per unit percent of sales selling price variable e

Per Unit Percent of Sales Selling price Variable expenses. Contribution margin $90 63 100% 70...

50.1K

Verified Solution

Question

Accounting

image
Per Unit Percent of Sales Selling price Variable expenses. Contribution margin $90 63 100% 70 30% $27 1. Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9.000? 2. 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 $2 per unit and increase unit sales by 10%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students