A Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for 20 per unit. Variable costs are 8 per unit, and fixed costs total 180,000 per year. Answer the following independent questions:
(c) Due to an increase in demand, the company estimates that sales will increase by 75,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change?

Question

23-08-2022
Business

contestada

A Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for 20 per unit. Variable costs are 8 per unit, and fixed costs total 180,000 per year. Answer the following independent questions:
(c) Due to an increase in demand, the company estimates that sales will increase by 75,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change?

Respuesta :

Otras preguntas

In which sentence does the verb agree with the subject? One of my friends is building her own solar panel. Neither of the girls were home on time. Many of our

The sun is made entirely of plasma,truefalse

One fourth of all telephones at the office have built in speaker phones. One -half the phones with the built-in speaker phones have conference-call capability,h

What is the angle of depression from B to C?

what do we call a specific variant of a character? A.gene B.trait C.locus

All rock on the ocean floor is less than 180 million years old because _____. the basaltic rock seafloor has been ground away by fine sediment older rock would

In July 1996, Florida implemented a _________________ law which contained curfew provisions which restricted teenage driving at night. Teenager Licensing Gra

what is the sum ? 2x

1. A patient requires a nonopioid medication. Thea nonopioid medication. The nurse knowsthat which medication will cause the least gastrointestinal distress?a.

Find the common difference of the sequence shown. 1/2, 1/4 , 0, ...

abhaydwive123 abhaydwive123 · Answer 1 · 2022-08-27T08:49:01+02:00

By $45,000 net operating income increase (or net loss decrease) assuming that fixed costs do not change.

Calculation of increase in operating income if sales increase by $75,000.

Increase in operating income = Increase in sales x Contribution margin ratio =75,000 x 60% =$45,000

Thus, net operating income would increase by $45,000 if sales increase by $75,000.

With the increase in sales revenue, the fixed costs would not change and so the additional operating profit earned by the company would be equal to additional revenue of $75,000 multiplied by the contribution margin ratio of 60% which gives a contribution margin of $45,000 and since there would be no changes in fixed costs the additional operating income would be $45,000.

Learn more about fixed costs at

https://brainly.com/question/3636923

#SPJ4