1. A company plans to reduce the price of its entire line of skateboards by 3%. Given...
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1. A company plans to reduce the price of its entire line of skateboards by 3%. Given the following information, the company needs to retain its 2% profit percentage (as a percentage of sales) with the planned price reduction. (Note: Unit fixed and variable costs will remain constant.)
Sales Volume 120,000 Units
Contribution Margin .35 (35%)
Fixed costs $6,840,000
Net Profit $360,000
Calculate the sales volume.
2. If a company has $11,500,000 in sales, a profit of 8.5% of sales, and a contribution margin of 45%, what are its total fixed costs?
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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