Cate the net income under the current situation

Assignment Help Accounting Basics

Reference no: EM13481617

Jensen Company has the following situation:

Sales Price: $40 per unit
Variable Cost Per Unit: $25 per unit
Fixed Costs: $20,000
Units Sold: 4,000

Jensen is considering lowering the price to $35 per unit which she believes would increase units sold to 4,750.

Required

Calculate the net income under the current situation and then again with the changes.
Should Jensen lower the price? Support your answer.

Current Net Income ____________________________________________
Net Income With Changes_______________________________________

Reference no: EM13481617

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