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hock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 600 100 Variable costs 390 65 Unit contribution margin $ 210 35 Assume that Shock Company is currently selling 672 computer monitors per month and monthly fixed costs are $128,000. If an $20,160 increase in the advertising budget would increase monthly sales by $75,000, the new level of operating income (πB) for Shock Company would be: (Do not round intermediate calculations.) Multiple Choice $15,210. $17,210. $20,210. $19,210. $13,120

hock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 600 100 Variable costs 390 65 Unit contribution margin $ 210 35 Assume that Shock Company is currently selling 672 computer monitors per month and monthly fixed costs are $128,000. If an $20,160 increase in the advertising budget would increase monthly sales by $75,000, the new level of operating income (πB) for Shock Company would be: (Do not round intermediate calculations.) Multiple Choice $15,210. $17,210. $20,210. $19,210. $13,120

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 600 100 Variable costs 390 65 Unit contribution margin $ 210 35 Assume that Shock Company is currently selling 672 computer monitors per month and monthly fixed costs are $128,000. If an $20,160 increase in the advertising budget would increase monthly sales by $75,000, the new level of operating income (πB) for Shock Company would be: (Do not round intermediate calculations.) Multiple Choice $15,210. $17,210. $20,210. $19,210. $13,120.
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