Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company that manufactures monitors has fixed costs of $75,500 per annum. The variable costs are 26% of sales and the profit is $63,000. When

A company that manufactures monitors has fixed costs of $75,500 per annum. The variable costs are 26% of sales and the profit is $63,000. When the selling price was reduced by 20%, the sales volume increased by 20%.

a.What was the original sales revenue? = 187,162.16

b.What were the original variable costs? = 48,662.16

c.What is the new sales revenue? = 179,675.67

d.What are the new variable costs? = 58,394.59

e.What is the amount of change in net income? = X

I have done the answer but it is saying am mistaking some where and i couldn't find it!!! and I want to know where is my mistake!!! and the last answer!!!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond M Brooks

3rd edition

133866696, 978-0133866698

More Books

Students also viewed these Finance questions