subject
Business, 12.11.2019 05:31 donnafranks2003

Acompany produces 1,000 packages of cat food per month. the sales price is $4.00 per pack. variable cost is $1.60 per unit, and fixed costs are $1,800 per month. management is considering adding a vitamin supplement to improve the value of the product. the variable cost will increase from $1.60 to $1.80 per unit, and fixed costs will increase by 10%. the company will price the new product at $8 per pack. how will this affect operatingincome?

a.

operating income will remain unchanged.

b.

operating income will increase by $3,620 per month.

c.

operating income will decrease by $2,020 per month.

d.

operating income will decrease by $3,620 per month.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 20:50, josephvcarter
Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?
Answers: 2
image
Business, 21.06.2019 22:20, salam4704
If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false
Answers: 2
image
Business, 22.06.2019 05:00, and7393
Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.
Answers: 3
image
Business, 22.06.2019 16:00, knownperson233
In macroeconomics, to study the aggregate means to study blank
Answers: 1
You know the right answer?
Acompany produces 1,000 packages of cat food per month. the sales price is $4.00 per pack. variable...

Questions in other subjects: