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In 2022, Bonita sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $400 and fixed expenses totaled $160000. The same selling price is expected for 2023. Bonita's unit variable cost will rise by 10% in 2023 due to increasing material costs so they are tentatively planning to cut fixed costs by $10000. If the company is successful in cutting fixed costs by $10000, how many units must Bonita sell in 2023 to maintain the same income level as 2022? Ⓒ1000 3167 2111 1583 eTextbook and Media

In 2022, Bonita sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $400 and fixed expenses totaled $160000. The same selling price is expected for 2023. Bonita's unit variable cost will rise by 10% in 2023 due to increasing material costs so they are tentatively planning to cut fixed costs by $10000. If the company is successful in cutting fixed costs by $10000, how many units must Bonita sell in 2023 to maintain the same income level as 2022? Ⓒ1000 3167 2111 1583 eTextbook and Media

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2022, Bonita sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $400 and fixed expenses totaled $160000. The same selling price is expected for 2023. Bonita's unit variable cost will rise by 10% in 2023 due to increasing material costs so they are tentatively planning to cut fixed costs by $10000. If the company is successful in cutting fixed costs by $10000, how many units must Bonita sell in 2023 to maintain the same income level as 2022? 1000 3167 2111 1583 eTextbook and Media for Later Attempts:0 of 1 used Submit Annwer
Transcribed Image Text:In 2022, Bonita sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $400 and fixed expenses totaled $160000. The same selling price is expected for 2023. Bonita's unit variable cost will rise by 10% in 2023 due to increasing material costs so they are tentatively planning to cut fixed costs by $10000. If the company is successful in cutting fixed costs by $10000, how many units must Bonita sell in 2023 to maintain the same income level as 2022? 1000 3167 2111 1583 eTextbook and Media for Later Attempts:0 of 1 used Submit Annwer
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