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QUESTION 2 (15 MARKS) a. John Power Auto shop tries to determine the profit of their business using cost volume analysis technique. She tends to
QUESTION 2 (15 MARKS) a. John Power Auto shop tries to determine the profit of their business using cost volume analysis technique. She tends to simulate several circumstances occurred and calculate profit of her business. Fixed Cost : $10,000 Variable Cost: S5/unit Revenue : S9/unit Sales are 5000 units. Define profit for the auto shop's business under circumstances below, if: 1. The owner decided to increase the retail price (revenue) of his product S1. II. The owner finds a way to decreased variable cost per unit decreases by $1.50. III. The operation has been changed and lead to the increase of fixed costs increase by $20,000 IV. The sales decrease by 1,000 units [15 marks]
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