Business, 12.11.2019 05:31, donnafranks2003
Acompany produces 1,000 packages of cat food per month. the sales price is $4.00 per pack. variable cost is $1.60 per unit, and fixed costs are $1,800 per month. management is considering adding a vitamin supplement to improve the value of the product. the variable cost will increase from $1.60 to $1.80 per unit, and fixed costs will increase by 10%. the company will price the new product at $8 per pack. how will this affect operatingincome?
a.
operating income will remain unchanged.
b.
operating income will increase by $3,620 per month.
c.
operating income will decrease by $2,020 per month.
d.
operating income will decrease by $3,620 per month.
Answers: 1
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Acompany produces 1,000 packages of cat food per month. the sales price is $4.00 per pack. variable...
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