1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ankoles [38]
3 years ago
10

Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selli

ng price $ 240 100 % Variable expenses 48 20 % Contribution margin $ 192 80 % Fixed expenses are $160,000 per month. The company is currently selling 1,500 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $65. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 700 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
Business
1 answer:
attashe74 [19]3 years ago
6 0

Answer:

Therefore, the change in total contribution margin is equal to change in net operating income, so there is no change in fixed expenses  and will not be affected.

Explanation:

The computation as per given question is given below:-

Variable cost per unit

= $48 + $65

= $113

Contribution margin per unit

= $240 - $113

= $127

Unit Monthly sales

= 1,500 + 240

= 1,740

Total contribution margin

= 1,740 × $127

= $220,980

Total contribution margin

= 1,500 × $192

= $288,000

So, change in total contribution margin and net operating income

= $288,000 - $220,980

= $67,020

Therefore, the change in total contribution margin is equal to change in net operating income, so there is no change in fixed expenses  and will not be affected.

You might be interested in
What element of Pinterest can help potential followers learn more about your product and company?
madreJ [45]
Could the answer be advertisements
5 0
3 years ago
Depending on the style of the wedding gown dash– and the size of the bride dash– a wedding dress​ custom-designed and sewn in​ j
Step2247 [10]
<span>These would be the variable costs. Since the dress uses up to a specified amount of each of these elements, the costs can vary depending on the size of the gown and the person wearing the gown. Variable costs, unlike those that are fixed, are able to change based upon outside factors.</span>
5 0
3 years ago
In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b
serg [7]

Answer:

d. 10.6% higher

Explanation:

Given that;

Real GDP = $13.2 trillion

Nominal GDP = $14.6 trillion

GDP deflator = (Nominal GDP/Real GDP)× 100)

Hence,

GDP deflator = (14.6 / 13.2 ) × 100

GDP deflator = 110.6%

Thus,

= 110.6 - 100

= 10.6% higher

5 0
2 years ago
A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her l
Ber [7]

Answer:

$3,220.90

Explanation:

Expected Return = $517 * 12 months * 20.8 years

Expected Return = $129,043.20

Exclusion Percentage = $62,000/ $129,043.20

Exclusion Percentage = 0.4804593

Exclusion Percentage = 48.05%

Exclusion amount = $6,200 * 48.05%

Exclusion amount = $2,979.1

Amount included in Income = $6,200 - $2,979.1

Amount included in Income = $3,220.90

5 0
2 years ago
When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organ
SVETLANKA909090 [29]

Answer: Organising

Explanation: Organising in management involves the role a manager plays to ensure that things are working effectively in an organization and that every department in the organization are working at their maximum best. In organising the manager puts everything in place for the smooth running of the organization.

7 0
3 years ago
Other questions:
  • Jan. 3 Loaned $21,600 cash to Trina Gelhaus, receiving a 90-day, 7% note. Feb. 10 Sold merchandise on account to Bradford &amp;
    10·1 answer
  • Select the statement that does not support the narrow view of non-managerial employees' responsibilities to their employer, the
    10·1 answer
  • your friend is over spending and in need of a budget whtat type of expenses should they reduce next month?a. buy fewer school bo
    11·1 answer
  • A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $522 and B for $53
    10·1 answer
  • Gamble Company convinced Conservative Corporation that the two companies should establish Simpletown Corporation to build a new
    14·2 answers
  • Which of the following statements about mentors is true?
    9·2 answers
  • Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r
    6·1 answer
  • The nurse is assessing a patient's functional ability. which activities most closely match the definition of functional ability?
    6·1 answer
  • Inventory Valuation under Absorption Costing
    14·1 answer
  • Labor costs charged to manufacturing overhead represent ______ labor costs.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!