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3 years ago

Kuzio Corporation produces and sells a single product. Data concerning that product appear below:

Business

1 answer:

lorasvet [3.4K]3 years ago

3 0

Answer:

The overall effect on the company's monthly net operating income of this change is $ 6,900, increase

Explanation:

Company's monthly net operating income before the change:

Sales (5,500× $ 150) 825,000

Less Variable Costs( 5,500 × $ 60) (330,000)

Contribution 495,000

Fixed Expenses (208,000) (208,000)

Net Operating Income 287,000

Company's monthly net operating income after the change:

Sales ((5,500+150)× $ 150) 847,500

Less Variable Costs ((5,500+150) × $ 60) (339,000)

Contribution 508,500

Fixed Expenses (208,000+6,600) (214,600)

Net Operating Income 293,900

Effect on the company's monthly net operating income:

Net Operating Income - After Change 293,900

Net Operating Income - Before Change 287,000

Change in Net Operating Income 6,900

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