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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.

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denis23 [38]

Answer:

C. bad payment history

Explanation:

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8 0
3 years ago
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GREYUIT [131]

Answer:

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Explanation:

Hope this helps :)

7 0
3 years ago
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grin007 [14]

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<h3>What is the importance of information?</h3>

It should be noted that information simply means the data that has been processed.

In this case, inormation is the presentation of raw numerical or verbal descriptions in a form that is useful for a specific purpose.

Learn more about information on:

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3 0
1 year ago
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stich3 [128]

Answer:

economic depletion

Explanation:

4 0
3 years ago
Read 2 more answers
External economies of scaleA.lead to the creation of a single large monopoly.B.cannot be associated with a perfectly competitive
devlian [24]

Answer:

The correct answer is option D.

Explanation:

External economies of scale can be defined as the situation when the average cost of production is reduced due to growth of industry as a whole. It can also be referred as the external benefit of expansion of the industry.

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