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    ace2040's Avatar
    ace2040 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 16, 2009, 03:39 PM
    cost value-profit relationships
    Data concerning Lemelin Corporation's single product appear below:
    per unit percent of sales
    SELLING PRICE... $230 100%
    VARIABLE EXPENSES... $115 50%
    CONTRIBUTION MARGIN... $115 50%
    The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month.

    The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change?
    will be a decrease or increase and of how much?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Mar 16, 2009, 03:54 PM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help
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