Pittsboro Corporation produces and sells a single product. Data for that product are: Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
What should be the overall effect on the company's monthly operating income if this change is implemented?

Question

Pittsboro Corporation produces and sells a single product. Data for that product are:  Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
What should be the overall effect on the company's monthly operating income if this change is implemented?

Quizplus · Accepted Answer

The Answer of Pittsboro Corporation produces and sells a single product. Data for that product are:  Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
What should be the overall effect on the company's monthly operating income if this change is implemented?

Pittsboro Corporation Produces and Sells a Single Product