Question: Th traceable fired expense is $3,000,000. Management is considering increasing the selling price of M20 by 5$. Unit sales are estimsted to decrease br os,
Th traceable fired expense is $3,000,000. Management is considering increasing the selling price of M20 by 5$. Unit sales are estimsted to decrease br os, dan to the increpr seling price. Assume that the total traceable fixed expense does not change. Required: a. Assume that the sales forecast is correct. What is the current net operating income? b. What net operating income will M29 earn if Fountain Corporation increases the selling arice by sw? c. If Fountain Corporation increases the selling price of M29 by 5%, and would like to rarn the same net operating incame, how marry units of sales shaidit tie alif? d. Based on requirement (o), is it better for Fountain Corporation to keep the current selling price of 5100 per unit or to increase the aelling price ty sth? Why
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