Data Concerning Milian Corporation's Single Product Appear Below: Fixed

question 125

Essay

Data concerning Milian Corporation's single product appear below: Fixed expenses are $66,000 per month.The company is currently selling 1,000 units per month.
Required:
Management is considering using a new component that would increase the unit variable cost by $15.Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 200 units.What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!

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Definitions:

Promoting Self-Esteem

The act of encouraging and supporting a positive self-image and confidence in individuals.

Respect

A feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements.

Consistent

Acting or done in the same way over time, especially to maintain fairness or accuracy.

Ineffective Health Maintenance

An individual's inability to manage and sustain health-promoting practices and routines.