Question
Tyler Co. is experiencing erratic sales of its product- a special battery. This month it generated a loss of $36,000. Tyler Co. sold 16,000 units
Tyler Co. is experiencing erratic sales of its product- a special battery. This month it generated a loss of $36,000. Tyler Co. sold 16,000 units for the month and has the following account balances for the income statement: Sales $480,000 Variable expenses $336,000 Fixed expenses $180,000 Compute the company's contribution margin ratio (I want the RATIO). Compute the break-even point for Tyler Co. in units Compute the break-even point for Tyler Co. in Sales Revenue ($). Assume for this question only that the company president of Tyler Co. believes a 10% decrease in the sales price and a $10,000 increase in the advertising costs will double the volume of sales. If this is correct, what will Tyler report as the new net income or loss?
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