Kern Company prepared the following tentative budget for next month: Sales ................... R500 000 Selling price ........... R5 per unit Variable expenses ....... R300 000 Fixed expenses .......... R150 000 The sales manager argues that the unit selling price could be increased by 20%, with an expected volume decrease of only 10%. If Kern incorporates these changes in its budget, what should be the budgeted net income? A. R120 000 B. R90 000 C. R66 000 D. R145 000
Kern Company prepared the following tentative budget for next month: Sales ................... R500 000 Selling price ........... R5 per unit Variable expenses ....... R300 000 Fixed expenses .......... R150 000 The sales manager argues that the unit selling price could be increased by 20%, with an expected volume decrease of only 10%. If Kern incorporates these changes in its budget, what should be the budgeted net income? A. R120 000 B. R90 000 C. R66 000 D. R145 000
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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Question
Kern Company prepared the following tentative budget for next month:
Sales ................... R500 000
Selling price ........... R5 per unit
Variable expenses ....... R300 000
Fixed expenses .......... R150 000
The sales manager argues that the unit selling price could be increased by 20%, with an expected volume decrease of only 10%. If Kern incorporates these changes in its budget, what should be the budgeted net income?
| A. |
R120 000 |
|
| B. |
R90 000 |
|
| C. |
R66 000 |
|
| D. |
R145 000 |
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