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Sinclair Company's single product has a selling price of$25 per unit. Last year the company reported a profit of $20,000 and variable expenses totaling$180,000.The product
Sinclair Company's single product has a selling price of$25 per unit. Last year the company reported a profit of $20,000 and variable expenses totaling$180,000.The product has a40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? 15,000 units 12,000 units 16, 500 units 12, 960 units Pool Company's variable expenses are 36% of sales. Pool is contemplating an advertising campaign that will cost $20,000. If sales increase by $80,000, the company's net operating income should increase by: $28, 800 $64,000 $8, 800 $31, 200
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