Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per...

 

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Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling $500 $320 $1,000,000 4,000 units Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? O A. Increase of $3,600 O B. Decrease of $3,600 OC. Decrease of $80,000 O D. Increase of $80,000 Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling $500 $320 $1,000,000 4,000 units Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? O A. Increase of $3,600 O B. Decrease of $3,600 OC. Decrease of $80,000 O D. Increase of $80,000

Answer rating: 100% (QA)

IF Change are Implemented Sales unit 400012 3920 Units Fixed Cost 100000080000 108000... View the full answer