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
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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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Transcribed Image Text: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? -> -> SAVE PROGRESS SUBMIT ASSI acer
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