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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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?
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