er 3 (3) - Word erences Mailings Review View Help COST-VOLUME-PROFIT CHART Revenues Variable Contribution Fixed...

 

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er 3 (3) - Word erences Mailings Review View Help COST-VOLUME-PROFIT CHART Revenues Variable Contribution Fixed Costs Margin Costs Operating Taxes@ Income 20% Net Income 10,000 8,000 2,000 1,500 500 100 400 Given the above revenue and cost structure as a starting point consider the following changes 1. 2 Decrease sales volume by 5% Increase sales volume by 10% 3 4. 5. 6 Increase variable costs by 2% and decrease fixed costs by 2% Increase sales by 10% and the selling price by 10% Decrease variable costs by 5% and increase fixed costs by $800 What would the sales revenues have to be to generate a net income of $700. er 3 (3) - Word erences Mailings Review View Help COST-VOLUME-PROFIT CHART Revenues Variable Contribution Fixed Costs Margin Costs Operating Taxes@ Income 20% Net Income 10,000 8,000 2,000 1,500 500 100 400 Given the above revenue and cost structure as a starting point consider the following changes 1. 2 Decrease sales volume by 5% Increase sales volume by 10% 3 4. 5. 6 Increase variable costs by 2% and decrease fixed costs by 2% Increase sales by 10% and the selling price by 10% Decrease variable costs by 5% and increase fixed costs by $800 What would the sales revenues have to be to generate a net income of $700.

Answer rating: 100% (QA)

Lets analyze each scenario step by step 1 Increase sales volume by 10 New Sales Volume 10000 110 110... View the full answer