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11 (7 points) A company currently sells 20,000 units and has the following operating results: Sales Variable expenses Fixed expenses Per Unit $50 29 21

11 (7 points) A company currently sells 20,000 units and has the following operating results: Sales Variable expenses Fixed expenses Per Unit $50 29 21 15 $6 Operating income Required: 1. The sales manager thinks that a 10% reduction in the selling price will result in increased sales of 3,000 units. Calculate the new total operating income if this action is taken. (3 marks) 2. Calculate the number of units that must be sold to have an after-tax income of $150,000 assuming the tax rate is 20%. (4 marks) Paragraph BIUA

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