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s2008m [1.1K]
3 years ago
15

Assume the company is considering a reduction in the selling price by $10 per unit and an increase in advertising budget by $5,0

00. This will increase sales volume by 50%. What is the net operating income after the changes?
Business
1 answer:
koban [17]3 years ago
7 0

Answer:

Explanation:

New selling price = $110 - $10

                             = $100

New sales level = 1,000 units x 150%

                          = 1,500 units  

Net operating income = 1,500 units × Selling price of $100 per unit - 1,500 units × variable expense of $60 per unit - $30,000 + $5,000

                                    = $25,000

Therefore, the net operating income after the changes is $25,000.

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Answer:

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Novosadov [1.4K]
The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.

I hope this helps!
~cupcake
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This Focus Group method is very efficient and accurate as the problems come from the horse's mouth so to speak and Multiple problems can be then be found and categorized separately.

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3 0
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