Clover Corporation has the following information available for their current level 4,000 units sold a month:...
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Clover Corporation has the following information available for their current level 4,000 units sold a month: Total Sales Revenue $491,000 Total Variable Expenses 215,000 $276,000 Total Contribution Margin The company is considering changing vendors where they can obtain the direct materials for $5 cheaper per unit. The company is also considering increase to monthly advertising by $12,500 in order to increase sales by 530 units per month. What effect would this change have on operating income? (...) O A. Decrease operating income by $35,150 O B. Increase operating income by $47,250 O C. Decrease operating income by $12,500 O D. Increase operating income by $46,720 Clover Corporation has the following information available for their current level 4,000 units sold a month: Total Sales Revenue $491,000 Total Variable Expenses 215,000 $276,000 Total Contribution Margin The company is considering changing vendors where they can obtain the direct materials for $5 cheaper per unit. The company is also considering increase to monthly advertising by $12,500 in order to increase sales by 530 units per month. What effect would this change have on operating income? (...) O A. Decrease operating income by $35,150 O B. Increase operating income by $47,250 O C. Decrease operating income by $12,500 O D. Increase operating income by $46,720
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Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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