Current Attempt in Progress Nancy is helping her company consider a change in its CVP relationship to increase profitability. Currently, the company is selling 14,200 units, generating $78,700 in operating income. The contribution margin is $29 per unit, while total variable costs are $298,200. What amount of fixed costs does the company currently incur? Fixed costs $ If it increases its selling price by 10% while expecting volume to drop by just 5%, will the company achieve its goal? New operating income $ The company ✓ its goal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Current Attempt in Progress
Nancy is helping her company consider a change in its CVP relationship to increase profitability. Currently, the company is selling
14,200 units, generating $78,700 in operating income. The contribution margin is $29 per unit, while total variable costs are
$298,200.
What amount of fixed costs does the company currently incur?
Fixed costs
$
If it increases its selling price by 10% while expecting volume to drop by just 5%, will the company achieve its goal?
New operating income
$
The company
✓ its goal.
Transcribed Image Text:Current Attempt in Progress Nancy is helping her company consider a change in its CVP relationship to increase profitability. Currently, the company is selling 14,200 units, generating $78,700 in operating income. The contribution margin is $29 per unit, while total variable costs are $298,200. What amount of fixed costs does the company currently incur? Fixed costs $ If it increases its selling price by 10% while expecting volume to drop by just 5%, will the company achieve its goal? New operating income $ The company ✓ its goal.
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