Question

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

Answer 1

Answer:

The monthly Net Operating Income would reduce by $100 if additional funds are allocated to Marketing Expenses.

Explanation:

I have attached a screen shot of my workings, give it a look and you will have a better idea of what is going on.

Key Points:

• New units to be sold are 7,210.
• Variable Expense is calculate as (Sales * Percentage of Variable Expense).
• A new Fixed cost of 6,700 for Marketing will be deducted.

I hope I made it very much clear for you. Feel free to ask if you have any confusion.

Thanks!