Zippy Company has a product that it currently sells in the market for $30 per...

60.1K

Verified Solution

Question

Accounting

Zippy Company has a product that it currently sells in the market for $30 per unit. Zippy has developed a new feature that, if added to the existing product, will allow Zippy to receive a price of $45 per unit. The total cost of adding this new feature is $39,000 and Zippy expects to sell 2500 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product? $1500 increase in operating income. $1500 decrease in operating income. $3500 decrease in operating income. $3000 increase in operating income. $2500 decrease in operating income.

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