Question: Data concerning Kropp's Corporation's single product appear below: Per Unit Selling Price $ 200 (Variable Cost) (40) Contribution Margin $ 160 Fixed expenses are $531,000

Data concerning Kropp's Corporation's single product appear below: Per Unit Selling Price $ 200 (Variable Cost) (40) Contribution Margin $ 160 Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Net Income will increase by $58,000 Net income will decrease $18,000 Net Income will increase by $38,000 Net Income will decrease by $38,000 O none of the choices are correct
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