Cobble Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $499,000 per month. Th

Cobble Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on the company’s monthly net operating income of this change

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  1. Answer: decrease of $8,900

    Explanation:

    Here are the options relating to the question:

    a. increase of $99,300

    b. decrease of $56,100

    c. decrease of $8,900

    d. increase of $56,100

    Net operating income (NOI) is a calculation that is used to analyze the profitability of an investment. The net operating income is calculated by subtracting the operating expenses from the total revenues of a property.

    After the calculations are made which is attached, the decrease in net operating income = $61,000 – $52,100 = $8,900

    The explanation has been attached

    cobble-corporation-produces-and-sells-a-single-product-data-concerning-that-product-appear-below-16786265-43

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