Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1) 1990-XYZ Company provides the following data: Sales Price $10 Variable Cost per unit S6 Fixed Cost - $20,000 Units sold 6,000 a) 400-what is
1) 1990-XYZ Company provides the following data: Sales Price $10 Variable Cost per unit S6 Fixed Cost - $20,000 Units sold 6,000 a) 400-what is the total contribution margin for the above data and what is meant by contribution margin'? b) 5%-By how much should sales price increase if the company wants to raise its advertising costs (fixed cost) by S4,000 while selling the same number of units and keeping the same level of profit? c) 5%-If the company doesn't change its sales price, and it cannot cut costs, what must it do to cover the anticipated extra S4,000 fixed cost to keep the same level of profit? Show calculations d) 500-How many units need to be sold if the company wants to earn an after tax income of $60,000. The tax rate is 40%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started