The sales manager believes that a reduction in the sales price to OMR 20 will result in orders for 200 more units each year. calculate the profit if the company accept this proposal
The sales manager believes that a reduction in the sales price to OMR 20 will result in orders for 200 more units each year. calculate the profit if the company accept this proposal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Al-Naseem Company fixed costs are OMR 120,000 per year. The variable cost of each unit is OMR 6, and sold for OMR 22 per unit. The company sold 9,000 units during the prior year. (Ignore income taxes)
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The sales manager believes that a reduction in the sales price to OMR 20 will result in orders for 200 more units each year. calculate the profit if the company accept this proposal Answer 3
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