What should be the overall effect of change

Reference no: EM131881690

Question: 1. Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,000 and variable expenses of $8,440. Product V04P had sales of $52,000 and variable expenses of $39,700. The fixed expenses of the entire company were $35,530. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

2. Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $160 100% Variable expenses 80 50% Contribution margin $ 80 50% The company is currently selling 6,800 units per month. Fixed expenses are $488,800 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Reference no: EM131881690

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