Percent of Per Unit Sales Selling price Variable expenses $ 135 100% 81 60 Contribution margin $54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qu components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by
Percent of Per Unit Sales Selling price Variable expenses $ 135 100% 81 60 Contribution margin $54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qu components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income by
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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Given that:
Unit selling price = $135 per unit
Variable cost per unit = $81 per unit
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