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A company has provided the following data: Sales 4,200 Units Sales price $ 60 per unit Variable cost $ 40 per unit Fixed cost $
A company has provided the following data:
Sales | 4,200 | Units | |
Sales price | $ | 60 | per unit |
Variable cost | $ | 40 | per unit |
Fixed cost | $ | 31,000 | |
If the sales volume decreases by 30%, the variable cost per unit increases by 20%, and all other factors remain the same, operating profit will:
decrease by $48,720.
decrease by $16,800.
increase by $26,880.
decrease by $4,280.
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