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Need help answering these two questions!! A company sells a single product with a contribution margin of $20 per unit. The company currently sells 1800
Need help answering these two questions!!
A company sells a single product with a contribution margin of $20 per unit. The company currently sells 1800 units per year and management believes that if they reduce the sales price by $1 per unit, sales will increase by 17%. How much will annual profit change if they take this action? (Round your final answer to the nearest dollar. Make sure to calculate the change in profit and not the new total profit. Indicate an increase in profit with a positive number and a decrease in profit with a negative number.) A company has the following financial results for the year 2020: Sales Revenue $100,000 Variable Costs $70,000 $30.000 Contribution Margin Fixed Costs $20,000 Net Income $10,000 What is the company's expected net income for 2021 if it expects sales to be 17% higher in 2021 than in 2020? (Make sure to calculate the new total expected net income for 2021 and not just the change in net income. Round your final answer to the nearest dollar. Round intermediate calculations to two decimal places.)Step by Step Solution
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