Marlow Company makes bulk quantities of cleaning fluids
They currently sell 1,200 containers a month at a sales price of $23.75 per unit. If they add a new scent, they could charge $25 per unit for the improved product. It would cost them a total of $800 per month to make that alteration. If they decide to process further, it will improve their operating income.
Indicate whether the statement is true or false
TRUE .Differential revenue [($25 - $23.75 ) x 1,200] $1,500
Differential fixed cost 800
Differential operating income $700
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Joe Brown Invests $10,000 into his new business. How would the journal entry for this transaction be entered in the journal.
A. Cash 10,000 (D) Brown, Capital 10,000 (C) Invested cash in business B. Cash 10,000 (C) Brown, Capital 10,000(C) Invested cash in business C. Brown, capital 10,000 (D) cash 10,000 (C) Invested cash in business D. Brown , capital 10,000 (C) Cash 10,000 (C) Invested cash in business
When the sales price per unit decreases, the contribution margin per unit ________
A) increases proportionately B) increases C) remains the same D) decreases