Solution-How much sales volume change compare with original

How much sales volume change compare with original budget

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Reference no: EM132549621

Kanona Limited sells one product for which data is given below:

N$ per unit

Selling price 10

Variable cost 6

Fixed cost 2

The fixed costs are based on a budgeted level of activity of 5 000 units for the period.

Question 1: If the selling price and variable cost increase by 20% and 12% respectively by how much must sales volume change compared with the original budgeted level in order to achieve the original profit for the period?

Select one:

Option a. 39.4% increase

Option b. 24.2% decrease

Option c. 24.2% increase

Option d. None of all

Option e. 39

Reference no: EM132549621

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How much sales volume change compare with original budget

Reference no: EM132549621

Reference no: EM132549621

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