Homework Answers
| Particulars. | Units13,000 | Units 20,000 |
| Sales. | 520,000 | 720,000 |
| Less:- variable cost | 312,000 | 400,000 |
| Contribution | 208,000 | 320,000 |
| Less:- Fixed cost | 100,000 | 170,000 |
| Profit | 108,000 | 150,000 |
Increase in variable cost = (400,000 - 320,000) = 88,000 Increase in additional profit = (150,000 - 108,000) = 42,000 . So, the answer is a. 88,000 and b. 42,000
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Question The management of Company "A" feels that if the price of Product X is decreased...
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Determine whether management
should accept or reject the new business.
Accept
Reject
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