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The following information is available about Why Companies product mix: The following information is available about Why Companies product mix: Product A B D Sales
The following information is available about Why Companies product mix: The following information is available about Why Companies product mix: Product A B D Sales mix (units) 5 4 3 2 Unit SP $ 6.00 $ 10.00 $ 14.00 $ 18.00 Unit VC $ 3.00 $ 6.00 $ 9.00 $ 12.00 Fixed costs $ 1,900.00 Tax 24% Current sales are 900 bundles. Due to market pressure, Why Companies believes they will have to decrease their selling prices by 10% in order to maintain their current level of sales. Shareholders, on the other hand, expect to see an increase in profit after tax of 10% for the coming year. Based on this information, by what percentage would variable costs have to decrease in order to achieve shareholder expectations
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