Thomas company has total fixed costs of 360000 and variable

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Reference no: EM13484309

Thomas Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65,000 units.

What are the contribution margin and net income under the revised conditions?

$650,000 and $280,000 respectively.
$400,000 and $40,000 respectively.
$280,000 and $40,000 respectively.
$390,000 and $20,000 respectively.
$400,000 and $20,000 respectively.

Reference no: EM13484309

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