Question
Tyler Co. is experiencing erratic sales of it's product- a special battery. Tyler Co. sold 19,500 units for the month and has the following account
Tyler Co. is experiencing erratic sales of it's product- a special battery.
Tyler Co. sold 19,500 units for the month and has the following account balances for the income statement:
Sales | $585,000 |
Variable expenses | $409,500 |
Fixed expenses | $180,000 |
A. Compute the company's contribution margin ratio. B. Compute the break-even point for Tyler Co. in units C. Compute the break-even point for Tyler Co. in Sales Revenue ($).
D. Assume for this question only that the company president of Tyler Co. believes a 10% decrease in the sales price and a $50,000 increase in the advertising costs will double the volume of sales. If this is correct, what will the new net income be?
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