Produces a Martha Manufacturing single product that for $52. Variable costs per unit equal $36. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 6,000 units. In an attempt to improve performance, management is considering a number of alternative actions. What is the percentage sensitivity of the selling price?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Martha Manufacturing Produces a
single product that for $52.
Variable costs per unit equal $36.
The company expects total fixed
costs to be $72,000 for the next
month at the projected sales level
of 6,000 units. In an attempt to
improve performance,
management is considering a
number of alternative actions.
What is the percentage sensitivity
of the selling price?
Transcribed Image Text:Martha Manufacturing Produces a single product that for $52. Variable costs per unit equal $36. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 6,000 units. In an attempt to improve performance, management is considering a number of alternative actions. What is the percentage sensitivity of the selling price?
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