Mildura Pty Ltd produced and sold 45,000 units of a single product last year. Data concerning the
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Question:
Mildura Pty Ltd produced and sold 45,000 units of a single product last year. Data concerning the year's income statement is as follows:
Sales revenue | $1,350,000 |
Manufacturing costs: | |
Variable | $585,000 |
Fixed | $270,000 |
Selling costs | |
Variable costs | $40,500 |
Fixed costs | $54,000 |
Administrative costs | |
Variable costs | $184,500 |
Fixed costs | $108,000 |
Assuming sales revenue increases by 15 per cent, what will be the percentage increase in profits before income taxes?
Answer:
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