Question Benown Co manufactures a single product which has a variable cost of $17 and currently sells.

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Benown Co manufactures a single product which has a variable cost of $17 and currently sells. for $30. The budgeted sales volume is 25,000 units per month and the budgeted fixed costs are $250,000 per month. The divisional manager is considering reducing the price to $27 to stimulate sales. He also wishes to increase the monthly profit by 10%. What volume of sales is required at the new selling price to increase profit by 10%? Benown Co manufactures a single product which has a variable cost of $17 and currently sells. for $30. The budgeted sales volume is 25,000 units per month and the budgeted fixed costs are $250,000 per month. The divisional manager is considering reducing the price to $27 to stimulate sales. He also wishes to increase the monthly profit by 10%. What volume of sales is required at the new selling price to increase profit by 10%?

Answer rating: 100% (QA)

ANSWERS Question1 The current profit contribution per unit is 13 30 17 To increase the profit by 10 the new profit contribution needs to be 1430 The n... View the full answer