Question

$3.50 A company has provided the following data: Sales: 3,000 units, Sales price: $70 per unit, Variable cost:$5, Fixed cost:

Found in Education: General-Education
Chapter 1, # 7
Posted by :
volcanblack
 
 
Q:

A company has provided the following data:

            Sales                            3,000 units

            Sales price                   $70 per unit

            Variable cost               $50 per unit

            Fixed cost                   $25,000

         
If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net income will:

     A)   decrease by $31,875.

     B)   decrease by $15,000.

     C)   increase by $20,625.

     D)   decrease by $3,125. 

 

Tutorial
 
$3.50
A company has provided the following data: Sales: 3,000 units, Sales price: $70 per unit, Variable cost:$5, Fixed cost:
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  • Posted on Dec. 03, 2011 at 03:01:17AM
A:
Preview: ... iable cost per unit increases by 15%, and all other factors remain the same, net income will:      A)   decrease by $31,875.      B)   decrease by $15,000.      C)   increase by $20,625.     ...

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