(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars, Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. 3) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and xed expenses are $20,000. (Unrelated to A&B)
(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars, Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. 3) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and xed expenses are $20,000. (Unrelated to A&B)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit.
A) Find the BEP in Units and in Dollars.
Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%.
B) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same.
C) Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and
fixed expenses are $20,000. (Unrelated to A&B)
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