Accounting MCQ
Accounting Chapter 5
Weinreich Corporation produces and sells a single product. Data concerning that product appear below: The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Weinreich Corporation produces and sells a single product. Data concerning that product appear below: The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Weinreich Corporation produces and sells a single product. Data concerning that product appear below: The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A. Increase of $2,700
B. Increase of $15,300
C. Decrease of $18,000
D. Decrease of $2,700
Answer: D
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