Question
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!!!
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