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3 years ago

Data concerning A Corporation's single product appear below:

Business

1 answer:

bulgar [2K]3 years ago

3 0

Answer:

Effect on income= $73,600 increase

Explanation:

Giving the following information:

Contribution margin $ 112

Increase in variable cost= $8 per unit.

Decrease in fixed costs= $100,000 per month.

Increase in sales unit= 500 units

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income= effect on total contribution margin + decrease in fixed costs

Effect on income= 500*104 - 9,800*8 + 100,000

Effect on income= $73,600 increase

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The statement that internet service providers are capable of providing products and services is false.

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Option C is correct answer.

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