Business
Business, 12.11.2020 18:50, msalecora

Cherry Street Market reported the following information for the sales of their only product, cherries sold by the pint:Sales: Total = $31,500 (Per Unit = $4.50)Variable expenses: Total = $9,450 (Per Unit = $1.35)Contribution margin: Total = $22,050 (Per Unit = $3.15)Total fixed expenses = $13,000Net operating income = $9,050Cherry Street would like to increase their selling price by 50 cents per unit, and feel that this will decrease sales volume by 10%. Should Cherry Street increase the price, and what will the effect be on net operating income?A. Yes; $3,500 increaseB. Yes; $945 increaseC. No; no changeD. No; $945 decrease

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