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A company that manufactures monitors has fixed costs of $77,500 per annum. The variable costs are 25% of sales and the profit is $56,000. When
A company that manufactures monitors has fixed costs of $77,500 per annum. The variable costs are 25% of sales and the profit is $56,000. When the selling price was reduced by 15%, the sales volume increased by 20%. a. What was the original sales revenue? Round to the nearest cent b. What were the original variable costs? Round to the nearest cent c. What is the new sales revenue? Round to the nearest cent d. What are the new variable costs? Round to the nearest cent e. What is the amount of change in net income?
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