#7 - 3 The company's controller believes that the company should have set...
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Accounting
#7 - 3
The company's controller believes that the company should have set last year's selling price at $60 instead of $58 per unit She estimates the company could have sold 16,000 units at a price of $60 per unit, thereby increasing the company's gross margin by $1,000 and its net operating income by $2,000. Do you think the absorption costing approach is the proper way to assess the merits of the proposed price increase? Do you think the variable costing approach is the proper way to assess the merits of the proposed price increase? Using the variable costing approach, by how much will profits increase or decrease if the price increase in implemented
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