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

question 31

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Data concerning Lancaster Corporation's single product appear below: Data concerning Lancaster Corporation's single product appear below:   Fixed expenses are $105,000 per month.The company is currently selling 1,000 units per month.Management is considering using a new component that would increase the unit variable cost by $44.Since the new component would increase the features of the company's product,the marketing manager predicts that monthly sales would increase by 400 units.What should be the overall effect on the company's monthly net operating income of this change? A) Decrease of $38,400 B) Decrease of $5,600 C) Increase of $5,600 D) Increase of $38,400 Fixed expenses are $105,000 per month.The company is currently selling 1,000 units per month.Management is considering using a new component that would increase the unit variable cost by $44.Since the new component would increase the features of the company's product,the marketing manager predicts that monthly sales would increase by 400 units.What should be the overall effect on the company's monthly net operating income of this change?

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Definitions:

RNA

Ribonucleic acid, a molecule essential for coding, decoding, regulation, and expression of genes, playing a critical role in protein synthesis and other cellular processes.

Astrobiologists

Scientists who study the origin, evolution, distribution, and future of life in the universe, including the potential for life on planets other than Earth.

Essential Component

A fundamental element or part necessary for the functioning or completeness of a system or whole.

Universe

The totality of all space, time, matter, and energy that exists, including galaxies, stars, planets, and all other forms of matter and energy.

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