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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sir please help me urgently
Transcribed Image Text:Question 1
Modern Footwear Industries manufactures a complete line of men's and women's dress shoes
for independent merchants. The average selling price for its finished product is RM85 per pair.
The variable cost is RM58. Modern Footwear incurs fixed costs of RM170,000 annually and
interest paid is RM20,000. The current sales level of the company is 12,500 pairs of shoes.
d. If the company plans to increase its current profit by 25%, what is the sales in units
and value that they need to incur?
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