selling price per unit | 1792000/64000= | 28.00 | ||
variable cost per unit | 1152000/64000= | 18.00 | ||
fixed cost | 4,79,000.00 | |||
new variable cost | 18-(18*0.2) | 14.40 | ||
Savings in VC | 18-14.4 | 3.60 | ||
New selling price | 28-(3.6*.50) | 26.20 | ||
No of units sold (new) | 64000+64000*5/100 | 67,200.00 | UNITS | |
PROJECTED INCOME STATEMENT | ||||
TOTAL | PER UNIT | |||
sales(a) | 67200*26.2 | 17,60,640.00 | 26.20 | |
Less | variable cost(b) | 67200*14.40 | 9,67,680.00 | 14.40 |
contribution(c=a-b) | 7,92,960.00 | 11.80 | ||
Less | Fixed Cost(d) | 479000+98000 | 5,77,000.00 | |
Profit/(Loss){e=c-d} | 2,15,960.00 |
Carey Company had sales in 2016 of $1,792,000 on 64,000 units. Variable costs totaled $1.152.000, and...
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