Business, 17.08.2021 02:50 xeskimopie

Calderon Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales
Selling price $200 100%
Variable expenses 42 21%
Contribution margin $158 79%
Fixed expenses are $69,500 per month. The company is currently selling 800 units per month. Management is considering using a new component that would increase the unit variable cost by $26. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 300 units.
Required:What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected?

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Calderon Corporation produces and sells a single product. Data concerning that product appear below:...

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