Managerial Accounting Data concerning MM Corporation\'s single product appear below: Fixed expenses are $55,000 per month. The company is currently selling 1.000 units per month. The marketing manager would like to cut the selling price by $6 and increase the advertising budget by $2,700 per month. The marketing manager predicts that these two changes would increase monthly sales by 100 units. What should be the overall effect on the company\'s monthly net operating income of this change? Please Show your work! CW Corporation produces and sells a single product. Data concerning that product appear below: Assume the company\'s monthly target profit is $69,000. Determine the unit sales to attain that target profit. Please Show your work! Assume the company\'s monthly target profit is $41,400. Determine the dollar sales to attain that target profit. Please Show your work! Solution Solution of Question 12: Current profit (at sales of 1000 units) = (No. of units x Contribution margin per unit) .

1. Managerial Accounting
Data concerning MM Corporation's single product appear below: Fixed expenses are $55,000
per month. The company is currently selling 1.000 units per month. The marketing manager
would like to cut the selling price by $6 and increase the advertising budget by $2,700 per
month. The marketing manager predicts that these two changes would increase monthly sales by
100 units. What should be the overall effect on the company's monthly net operating income of
this change? Please Show your work! CW Corporation produces and sells a single product. Data
concerning that product appear below: Assume the company's monthly target profit is $69,000.
Determine the unit sales to attain that target profit. Please Show your work! Assume the
company's monthly target profit is $41,400. Determine the dollar sales to attain that target profit.
Please Show your work!
Solution
Solution of Question 12:
Current profit (at sales of 1000 units) = (No. of units x Contribution margin per unit)