Question
1c) Jolly Ltd currently has fixed costs of 12,000. Sales revenue per unit is 8 and variable costs are 2 per unit. Next year the
1c) Jolly Ltd currently has fixed costs of 12,000. Sales revenue per unit is 8 and
variable costs are 2 per unit.
Next year the company wants to achieve a profit of 10,000. Sales revenue will rise by 30% and variable costs rise by 20%. The company wants the Break Even Point to remain the same as this year. What do fixed costs need to be for this to happen?
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve
9th Edition
0324381921, 978-0324381924
