Question: Data for Fatima Corporation are shown below Total Per unit Sales $570,000 95 Variable expenses $318.000 53 Contribution margin $252.000 Fixed expenses are $307,000 per
Data for Fatima Corporation are shown below Total Per unit Sales $570,000 95 Variable expenses $318.000 53 Contribution margin $252.000 Fixed expenses are $307,000 per month. The company is currently selling 6,000 units per month Required: Management is considering using a new component that would increase the unit variable cost by 52. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 7% What should be the overall effect on the company's monthly net operating income of this change of variable expenses per unit? If there is a decrease just put a minus sign next to the number
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