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Author Question: Clarkson Computer Company distributes a specialized wrist support that sells for $30. The company's ... (Read 92 times)

kandiwilson165@gmail.com

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Clarkson Computer Company distributes a specialized wrist support that sells for $30. The company's variable costs are $12 per unit; fixed costs total $360,000 a year.

Required:

a.If sales increase by $41,000 per year, by how much should operating income
increase?
b.Last year, Clarkson sold 32,000 wrist supports. The company's marketing manager is
convinced that a 6% reduction in the sales price, combined with a $50,000 increase in advertising, will result in a 30% increase in sales volume over last year. Should Clarkson implement the price reduction? Why or why not?


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Marked as best answer by kandiwilson165@gmail.com on Feb 5, 2023

gwisel

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kandiwilson165@gmail.com

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


adammoses97

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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