Fixed expenses are $521,000 per month. the company is currently selling 7,000 units per month. management is considering using a new component that would increase the unit variable cost by $6. since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. what should be the overall effect on the company's monthly net operating income of this change

Increase in Variable costs= $45,000

Explanation:

Giving the following information:

Fixed expenses are $521,000 per month. The company is currently selling 7,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units.

Increase in Variable costs= 7500 * 6= 45,000

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urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total