A hotel takes out a loan of $600,000 to renovate its guest r…

A hotel takes out a loan of $600,000 to renovate its guest rooms and upgrade facilities. The loan term is 12 months, using straight-line amortization. The annual interest rate is 6%, compounded monthly. The hotel repays equal amounts of principal each month, and interest is charged on the outstanding loan balance. Which of the following statements is correct?

A company sells a product for $120 per unit. The variable co…

A company sells a product for $120 per unit. The variable cost is $70 per unit, and fixed costs total $30,000 per month. Currently, the company sells 800 units per month. Management plans to reduce the selling price by 10%, which is expected to increase sales volume by 25%. Fixed costs and variable cost per unit will remain unchanged. What will be the company’s new operating income after this change?