What should be the overall effect on the company

Assignment Help Managerial Accounting

Reference no: EM133502568

Question: 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.

Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of 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?

Reference no: EM133502568

Questions Cloud

Peggy seeks legal advice on filing action : Peggy seeks legal advice on filing an action in court to challenge the order to close the restaurants and dispute the notice of violations,

What information would be relevant to perform : What information would be relevant to perform a quantitative analysis of a housing first strategy.

Detailed personal leadership improvement plan : A detailed personal Leadership Improvement plan. Identify the key elements of your plan to strengthen your practice of leadership

What is career development learning : What is Career Development learning and why is it important in your own future?

What should be the overall effect on the company : What should be the overall effect on the companys monthly net operating income of this change

Identify a data collection tool : Consider how you could employ translational research to potentially overcome barriers, which may arise during data collection.

Explain how the information affects inherent risk : percentage shouldn't be changed from 2% to 5% as it is risky for the financial reports Explain how the information affects inherent risk

Identify the type of analyses undertaken to address each : What is the research problem? Does the problem build a persuasive argument for the new study? Is the problem statement easy to locate?

Specific easements are listed as exceptions to coverage : How many specific easements are listed as exceptions to coverage? Is the legal description accurate in terms of including the entire property?

User Account

All Pages