In 2019, Sheridan sold 1000 units at $550 each, and earned net income of $76000. Variable...
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In 2019, Sheridan sold 1000 units at $550 each, and earned net income of $76000. Variable expenses were $330 per unit, and fixed expenses were $144000. The same selling price is expected for 2020. Sheridan's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Sheridan sell in 2020 to maintain the same income level as 2019? In 2019, Sheridan sold 1000 units at $550 each, and earned net income of $76000. Variable expenses were $330 per unit, and fixed expenses were $144000. The same selling price is expected for 2020. Sheridan's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Sheridan sell in 2020 to maintain the same income level as 2019?
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Related Book For
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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