What is the income now and if they reduce the price

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1. Currently we are selling 6,000 units. They are considering reducing the price 10% but plan on still paying a sales commission of $12. They think that sales will increase by 1,200 units. What is the income now and if they reduce the price?

a) $120,000 and $105,600

b) $105,600 and $120,000

c) $120,000 and $120,000

d) $105,600 and $107,800

2. Refer to the above. Materials of $9,000 and labor of $7,500 are incurred. Overhead is 120% of labor. What is the cost of this job?

a) $25,500

b) $27,300

c) $16,500

d) none of the above

Reference no: EM131256748

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