The sales manager believes at 10% increase in variable unit selling expense well increase sales volume. if the sales volume increases by 28.5% what will be the change in net operating income? Is this a good idea, why or why not?

Question

Business

Carolyn May

9 February, 01:09

The sales manager believes at 10% increase in variable unit selling expense well increase sales volume. if the sales volume increases by 28.5% what will be the change in net operating income? Is this a good idea, why or why not?

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Answers (1)

Know the Answer?

Belinda · Answer 1

Do not have enough data

Explanation:

It depends on the proportion of the variable and fixed costs. We need more data such as the selling price and the exact variable and fixed costs n order to comment on this proposed idea.