if the company decreases the selling price by 5% and as a result the sales volume increases by 10%? A company that produces cameras has fixed costs of $75,000 per annum and sales revenue of $650,000. The variable costs are of 70% of sales.

a. What is the net income?

b. What is the amount of change in the net income if the company increases the selling price by 10%?

c. What is the amount of change in the net income, if the company increases the selling price by 10% and as a result the sales volume decreases by 5%?

AppendixLO1