Question $3$

$20$ pts

$(20$ pts$)$ Given: Selling price $$\frac{50}{?}$ unit, total fixed expenses $$95,000,$ variable expenses $$\frac{40}{?}$ unit.

A$)$ Find the BEP in Units and in Dollars.

Assume the above variable expenses are reduced by $25\%$ and the total fixed expenses are increased by $10\%.$

B$)$ Find the sales in units to achieve a profit of $$30,000$ assuming that the selling price stays the same.

C$)$ Find the net income if activity volume increases by $20\%,$ assuming total sales are $$32,000,$ variable expenses are $$12,000,$ and fixed expenses are $$20,000.($Unrelated to $A$&$B)$

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