A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are 30% of sales and the profit is $63,000. When the selling price was reduced by 10%, the sales volume increased by 25%. a. What was the original sales revenue? Round to the nearest cent b. What were the original variable costs?

A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are 30% of sales and the profit is $63,000. When the selling price was reduced by 10%, the sales volume increased by 25%. a. What was the original sales revenue? Round to the nearest cent b. What were the original variable costs?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

A company that manufactures monitors has fixed costs of $82,000 per annum. The
variable costs are 30% of sales and the profit is $63,000. When the selling price was
reduced by 10%, the sales volume increased by 25%.
a. What was the original sales revenue?
Round to the nearest cent
b. What were the original variable costs?
->
->
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SUBMIT ASSI
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