TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the product: Desk Company Desk Company has a product that it currently sells in the market for $80 per unit. Desk has developed a new feature that, if added to the existing product, will allow Desk to receive a price of $95 per unit. The total cost of adding this new feature is $20,000 and Desk expects to sell 1,200 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product? Multiple Choice
TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the product: Desk Company Desk Company has a product that it currently sells in the market for $80 per unit. Desk has developed a new feature that, if added to the existing product, will allow Desk to receive a price of $95 per unit. The total cost of adding this new feature is $20,000 and Desk expects to sell 1,200 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product? Multiple Choice
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 13E
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Desk company has a product that it currently sells in the market for $80 per unit. Does develop a new feature that if added to the 16 product will allow desk to receive a price of $95 per unit.
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TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the product: Desk Company
Desk Company has a product that it currently sells in the market for $80 per unit. Desk has developed a new feature that, if added to the existing product, will allow Desk to receive a price of $95 per unit. The total cost
of adding this new feature is $20,000 and Desk expects to sell 1,200 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product?
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