Question: Question (3 points) The company Environmental Solutions AB, whose only product is to provide a certain type of consulting service, has sales revenues of SEK

Question (3 points) The company Environmental Solutions AB, whose only product is to provide a certain type of consulting service, has sales revenues of SEK 9,000 thousand for the 2020 financial year. During the financial year, the company's fixed costs amounted to SEK 2,500,000 and the variable costs (which are proportionally variable) amounted to 40% of sales revenue. During the next year (financial year 2021), the company expects a sales reduction of 10% (fixed costs are expected to remain unchanged). Based on this information, how much lower is the result for the financial year 2021 expected to be compared with the previous year's result? Answer in SEK thousand
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
