Gaga is currently selling 874 units per month at $16. Variable costs per unit are $2. Fixed expenses are $1359 per month. The marketing manager believes that an $321 increase in the monthly advertising budget would result in a 121 unit increase in monthly sales.
What should be the overall effect in dollars on the company's monthly net operating income of this change?
Gaga reported the following:
Units: 656
Sales $6737
Variable Costs $620
Fixed Costs $538
If the company reduces its selling price by $1.07 per unit to generate more sales AND expects the number of units sold to increase by 282 units, what would be the impact to net income?
lo reported the following:
Units: 781
Sales $6254
Variable Costs $421
Fixed Costs $233
Compute break-even units. Round ONLY your final answer to the nearest whole unit (0 decimal places). Do not round intermediate computations
Gaga reported the following:
Units: 269
Sales $7074
Variable Costs $288
Fixed Costs $159
If the company eliminates sales comissions of $8 per unit by changing to a flat salary increase of $3426 for its sales managers, by what dollar amount would net income change?
Answer & Explanation
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