GPBInchasthefollowingContributionMarginstyleincomestatementatasalesvolumeof 1,000units: Total$ Sales $40,000 VC 30,000 CM $10,000 FC 10,000 NetOpInc $0 REQUIRED: i)Youwillincreasethesalespriceperunitby$8,butsalesvolumeisexpectedtodrop300units. FixedCostswillalsoincreaseanet$100. ComputetheNetOp
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Question:
GPBInchasthefollowingContributionMarginstyleincomestatementatasalesvolumeof
1,000units:
Total$
Sales | $40,000 |
VC | 30,000 |
CM | $10,000 |
FC | 10,000 |
NetOpInc | $0 |
REQUIRED:
i)Youwillincreasethesalespriceperunitby$8,butsalesvolumeisexpectedtodrop300units. FixedCostswillalsoincreaseanet$100. ComputetheNetOp Incomeunderthisnewscenario. Doyou recommend managementproceedwiththischange?
Related Book For
Construction Management
ISBN: 9781119256809
5th Edition
Authors: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
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