Current | Proposed | |
Units | 4400 | (4400+180)=4580 |
Sales | (4400*210)=924,000 | (4580*210)=961800 |
Variable expenses | (4400*84)=369600 | (4580*84)=384720 |
Contribution margin | 554400 | 577080 |
Fixed expenses | 349,000 | (349,000+18,000)=367,000 |
Net operating income | 205400 | 210080 |
Hence increase in Net operating income=210080-205400
=$4680
3.Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percen...
3.Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 210 100 % Variable expenses 84 40 % Contribution margin $ 126 60 % Fixed expenses are $349,000 per month. The company is currently selling 4,400 units per month. Required: ( 5 points) The marketing manager believes that a $18,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should...
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 250 100 % Variable expenses 100 40 % Contribution margin $ 150 60 % Fixed expenses are $353,000 per month. The company is currently selling 4,800 units per month. Required: The marketing manager believes that a $22,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall...
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 230 100 % Variable expenses 92 40 % Contribution margin $ 138 60 % Fixed expenses are $351,000 per month. The company is currently selling 4,600 units per month. Required: The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall...
37 Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 190 100 % Variable expenses 57 30 % Contribution margin $ 133 70 % Fixed expenses are $348,000 per month. The company is currently selling 4,300 units per month. Required: The marketing manager believes that a $17,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 65 50 % Contribution margin $ 65 50 % The company is currently selling 4,900 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect...
Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 125 100 % Variable expenses 75 60 % Contribution margin 50 40 % The company is currently selling 5,320 units per month. Fixed expenses are $240,000 per month. The marketing manager believes that a $7,600 increase in the monthly advertising budget would result in a 330 unit increase in monthly sales. What should be the overall effect on...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below. Ang Prexpens rein Selling price Variable expenses Contribution margin Per Unit $140 84 $ 56 Percent of Sales 100% 60% 40% The company is currently selling 6,700 units per month Fixed expenses are $180,000 per month. The marketing manager believes that a $7000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 40% Per Unit $130 52 $ 78 Selling price Variable expenses Contribution margin 60% The company is currently selling 5,000 units per month. Fixed expenses are $216,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly...
TB Problem Qu. 6-234 Data concerning Wislocki ... Data concerning Wislocki Corporation's single product appear below. Percent of Sales 1005 205 Per Unit $140 28 $112 Selling price Variable expenses Contribution margin 809 Fixed expenses are $1,055,000 per month. The company is currently selling 9,700 units per month Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $10 per unit. In exchange, the sales...
Kuzlo Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Percent of Sales 100% 40% 608 The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7100 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly...