Stop & Shop Inc. estimates that next year's results will be: Sales revenue $(150,000$ units) . .

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Stop \& Shop Inc. estimates that next year's results will be:

Sales revenue $(150,000$ units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 1,125,000$

Less variable costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\quad(600,000)$

Less fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 125,000$

Recompute income, assuming each of the following independent conditions:

1. 10 percent increase in the contribution margin.

2. 6 percent increase in the sales volume.

3. 6 percent decrease in the sales volume.

4. 6 percent increase in variable costs per unit.

5. 7 percent decrease in fixed costs.

6. 7 percent increase in fixed costs.

7. 7 percent increase in the sales volume and a 5 percent increase in fixed costs.

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Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9780538846172

1st Edition

Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen

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