Question $9(1$ point$)$

Portmain Industries management has budgeted the following amounts for its next

fiscal year:

Increase competition in the market has forced management to consider a price

reduction of $10\%.$ In order to maintain the same targeted operating income of

$$30,000$ by what percentage must Portmain increase the number of units sold?

A$)$ Increased by $100\%$

B$)$ Increased by $40\%$

C$)$ Increased by $50\%$

D$)$ Decreased by $100\%$

Transcribed Image Text:

Question 9 (1 point) Portmain Industries management has budgeted the following amounts for its next fiscal year: Total fixed expenses Sale price per unit Variable expenses per unit $60,000 $40 $31 Increase competition in the market has forced management to consider a price reduction of 10%. In order to maintain the same targeted operating income of $30,000 by what percentage must Portmain increase the number of units sold? A) Increased by 100% B) Increased by 40% C) Increased by 50% D) Decreased by 100% Question 9 (1 point) Portmain Industries management has budgeted the following amounts for its next fiscal year: Total fixed expenses Sale price per unit Variable expenses per unit $60,000 $40 $31 Increase competition in the market has forced management to consider a price reduction of 10%. In order to maintain the same targeted operating income of $30,000 by what percentage must Portmain increase the number of units sold? A) Increased by 100% B) Increased by 40% C) Increased by 50% D) Decreased by 100%

Answer rating: 100% (QA)

Answer Given information Total fixed expenses 60000 Original sale price per unit 40 Variable expense... View the full answer