TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the product: Desk Company Desk Company has a product that it currently sells in the market for $80 per unit. Desk has developed a new feature that, if added to the existing product, will allow Desk to receive a price of $95 per unit. The total cost of adding this new feature is $20,000 and Desk expects to sell 1,200 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

TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the product: Desk Company Desk Company has a product that it currently sells in the market for $80 per unit. Desk has developed a new feature that, if added to the existing product, will allow Desk to receive a price of $95 per unit. The total cost of adding this new feature is $20,000 and Desk expects to sell 1,200 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

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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