Solution-Explain the original sales revenue

Explain the original sales revenue

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A company that manufactures monitors has fixed costs of $85,000 per annum. The variable costs are 28% of sales and the profit is $58,000. When the selling price was reduced by 20%, the sales volume increased by 20%.

(a) What was the original sales revenue?

(b) What were the original variable costs?

(d) What are the new variable costs?

(e) What is the amount of change in net income?

Reference no: EM133170392

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Explain the original sales revenue

Reference no: EM133170392

Reference no: EM133170392

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