Desk company has a product that it currently sales in the market for $50 per unit. Desk has develop in new feature that, if added to existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new future is $44,000 and Desk expects to sell 2,800 units in the coming year. What is the net effect on the next-year's operating income of adding the feature to the product?
Desk company has a product that it currently sales in the market for $50 per unit. Desk has develop in new feature that, if added to existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new future is $44,000 and Desk expects to sell 2,800 units in the coming year. What is the net effect on the next-year's operating income of adding the feature to the product?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...
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Desk company has a product that it currently sales in the market for $50 per unit. Desk has develop in new feature that, if added to existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new future is $44,000 and Desk expects to sell 2,800 units in the coming year. What is the net effect on the next-year's operating income of adding the feature to the product?
![Desk Company has a product that it currently sells in the market for $50 per unit. Desk has developed a new feature that, if added to the
existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new feature is $44,000 and Desk expects to
sell 2,800 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product?
Multiple Choice](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F08138c1b-b13f-4cc9-90fc-4bc24dd3dae9%2Ff742f7e0-27e7-4626-8863-4a7c78550efb%2F017tn6m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Desk Company has a product that it currently sells in the market for $50 per unit. Desk has developed a new feature that, if added to the
existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new feature is $44,000 and Desk expects to
sell 2,800 units in the coming year. What is the net effect on next-year's operating income of adding the feature to the product?
Multiple Choice
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