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Brilliant_brown [7]
3 years ago
6

Pittsboro Corporation produces and sells a single product. Data for that product​ are: Sales price per unit Variable cost per un

it Fixed expenses for the month Currently selling units Management is discussing increasing the price to to cover an increase in fixed expenses of . Management believes they might lose​ 2% of sales per month. What should be the overall effect on the​ company's monthly operating income if this change is​ implemented?
Business
1 answer:
kolezko [41]3 years ago
5 0

Answer:

The remaining part of the question is:

Round up to the newest whole unit.

OA . 3,572 units

OB.  4,000 units

OC.  3,935 units

OD.  5.269 units

Correct Answer:

OC.  3,935 units

Explanation:

Current sales 2000000 = 4000*500

Less: Variable costs 880000 = 4000*220

Less: Fixed costs 1000000  

Current operating income 120000  

Fixed costs 1080000 =1000000+80000

Add: Operating income 120000  

Required Contribution margin 1200000  

Divide by Contribution margin per unit 305 =525-220

Units to be sold 3935  

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Answer:

The market analyst is requesting you to perform a formal research.

Explanation:

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8 0
3 years ago
A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______
shusha [124]

Answer:

D

Explanation:

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.

8 0
3 years ago
Read 2 more answers
The York Company has arranged a line of credit that allows it to borrow up to $64 milion at any time. The interest rate is .640
klio [65]

Answer:

8.46%

Explanation:

Monthly interest rate = 0.640%

Number of month in year = 12

Investment in non-interest bearing = 6%

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Effective annual interest = [(1 + 0.640%)^12] - 1 / (1 - 6%)

Effective annual interest = (1.0064)^12 - 1 / 0.94

Effective annual interest = 1.07956187072 - 1 / 0.94

Effective annual interest = 0.07956187072 / 0.94

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7 0
3 years ago
The doctrine that allows for a more flexible use of copyrighted material such as for educational purposes is known as _____.
densk [106]

Answer:

where are the options for these questions

8 0
3 years ago
The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale
nirvana33 [79]

<u>Solution and Explanation:</u>

calculating the increase in the net operating income is as follows:

S.no                    Particulars and explanation                    Amount

1.                    Sales ( $268000 + 84000 )                         352000

2. Contribution ( 1 multiply with 40 percent)                      140000

3. Fied expense ( $119200 plus $6200 )                         125400

4. Net operating income ( 2 step minus 3 step)                $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

3 0
3 years ago
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