Question: J Ltd collected the following data about their monthly contribution margins from sales of their products, Shelters, Kwakus and Leyis: Product Sh K L Total
J Ltd collected the following data about their monthly contribution margins from sales of their products, Shelters, Kwakus and Leyis: Product Sh K L Total Selling Price 7, 6, 8, Variable Cost 2, 2, 4, Contribution Margin 5, 4, 4, Units Sold 12,000; 8,000 ;10,000 J believes that she could increase sales of K by 5,000 units per month if more attention were devoted to it and less to Sh. Sh sales would decrease by 2,000 per month. What change in income would occur if this action were taken?
A. Income would remain the same B. Increase of $20,000 C. Increase of $10,000 D. Decrease of $10,000 E. Cannot determine from data provided
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