Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A construction + mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000 7,253,600 VARIABLE COSTS 90.67 538,000 FIXED COSTS NET PROFIT

image text in transcribed

A construction + mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000 7,253,600 VARIABLE COSTS 90.67 538,000 FIXED COSTS NET PROFIT (BEFORE TAXES) MARGINAL RATIO 208,400 9.33 1. If the company decreases price by 3%, what earnings are required to yield the profit goal of $256,667? What is the percentage change in work quantity? (2 points) 2. If the company increases price by 3%, what earnings are required to yield the profit goal of $256,667? What is the average change in work quantity? (2 points)

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_2

Step: 3

blur-text-image_3

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

Accounting Understanding And Practice

Authors: Robert Perks

4th Edition

0077139135, 978-0077139131

More Books

Students also viewed these Accounting questions

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago

Question

What are the functions of top management?

Answered: 1 week ago

Question

Bring out the limitations of planning.

Answered: 1 week ago