Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AC Ltd Sales ($10 per unit) 160,000 Variable Costs 112,000 Contribution Margin 48,000 Fixed Costs (70,000) Net Loss (22,000) If ACs advertising increased by $9,000

AC Ltd

Sales ($10 per unit) 160,000

Variable Costs 112,000

Contribution Margin 48,000

Fixed Costs (70,000)

Net Loss (22,000)

  1. If ACs advertising increased by $9,000 and they wanted to achieve a Profit of $5,000, how much (in $) would their sales have to increase?
  2. What would their Profit (or Loss) be if sales increased by 25% and fixed costs were reduced by 10%?

(Show all workings)

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

Development Of A Methodology For Customizing Insider Threat Auditing On A Linux Operating System

Authors: William T. Bai, Air Force Institute Of Technology (U.S.)

1st Edition

1249449847, 978-1249449843

More Books

Students also viewed these Accounting questions

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago