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Acompanyr currently sells 20,000 units and has the following operating results: Per Unit Sales $50 1I..I'ariahle expenses g 21 Fixed expenses lOperating income E Required:
Acompanyr currently sells 20,000 units and has the following operating results: Per Unit Sales $50 1I..I'ariahle expenses g 21 Fixed expenses lOperating income E Required: 1. The sales manager thinks that a 10% reduction in The selling price 1.Irill result in increased sales of 3,000 units. Calculate the neu-r total operating income if this action is taken. (3 marks} a. lCalculate the number of units that must he sold to have an afterta): income of $150,000 assuming the tax rate is 20%. {4 marks} Paragraph V B I L; V in} Nelsons-serif v 12pl v
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