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Q1) Selling price per unit-$30;

total fixed expenses-$33,000;

variable expenses per unit - $14.

Determine total sales in units to get a profit of $7,000, suppose no change in selling price.

Q2) Sales-$50,000;

variable expenses-$20,000;

fixed expenses- $20,000;

net income-$10,000.

Suppose no change in selling price; determine net income if activity volume increases 10%.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918936

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