Test Company reported the following income statement for the most recent period. Sales (8,000 units) $160,000 Variable
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Question:
Test Company reported the following income statement for the most recent period.
Sales (8,000 units) | $160,000 |
Variable expenses | 96,000 |
Contribution margin | 64,000 |
Fixed expenses | 30,000 |
Operating income | $34,000 |
Test Company’s sales manager proposed holding a Holiday Sale. Prices would be discounted 5% and an additional $2,000 would be used for advertising to promote the event. Determine the number of units Test Company must sell during the promotion to earn $38,000
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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