Question

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

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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:
• This tutorial was purchased 1 time and rated No Rating by students like you.
• 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: Â Â Â Â  A)Â Â  decrease by \$31,875. Â Â Â Â  B)Â Â  decrease by \$15,000. Â Â Â Â  C)Â Â  increase by \$20,625. Â Â Â  ...

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