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Question: A company that manufactures monitors has fixed costs of $84,500 per annum. The variable costs are 32% of sales and the profit is $58,500. When the selling price was reduced by 15%, the sales volume increased by 20%.
a. What was the original sales revenue? $0.00 Round to the nearest cent
b. What were the original variable costs? $0.00 Round to the nearest cent
c. What is the new sales revenue? $0.00 Round to the nearest cent d. What are the new variable costs? $0.00 Round to the nearest cent
e. What is the amount of change in net income? $0.00 Round to the nearest cent. Use a negative sign to represent a loss
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