Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 ( 1 point ) Portmain Industries management has budgeted the following amounts for its next fiscal year: Increase competition in the market has

Question 9(1 point)
Portmain Industries management has budgeted the following amounts for its next
fiscal year:
Increase competition in the market has forced management to consider a price
reduction of 10%. In order to maintain the same targeted operating income of
$30,000 by what percentage must Portmain increase the number of units sold?
A) Increased by 100%
B) Increased by 40%
C) Increased by 50%
D) Decreased by 100%
image

Question 9 (1 point) Portmain Industries management has budgeted the following amounts for its next fiscal year: Total fixed expenses Sale price per unit Variable expenses per unit $60,000 $40 $31 Increase competition in the market has forced management to consider a price reduction of 10%. In order to maintain the same targeted operating income of $30,000 by what percentage must Portmain increase the number of units sold? A) Increased by 100% B) Increased by 40% C) Increased by 50% D) Decreased by 100%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer Given information Total fixed expenses 60000 Original sale price per unit 40 Variable expense... 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

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions

Question

What does the controllability principle require?

Answered: 1 week ago