A company that manufactures monitors has fixed costs of $78,000 per annum. The variable costs are 30% of sales and the profit is $64,500. When the selling price was reduced by 10%, the sales volume increased by 20%. What was the original sales revenue?

A company that manufactures monitors has fixed costs of $78,000 per annum. The variable costs are 30% of sales and the profit is $64,500. When the selling price was reduced by 10%, the sales volume increased by 20%. What was the original sales revenue?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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