The Sizemore Company recently sold 2,500 units for $100 each; reported totalvariable costs of $162,500 and a net income of $47,500. If the company's price perunit increased by $5 and its volume decreased by 250 units, what would be thecompany's net income?

case 1 : assuming the variable cost per unit remains constant and fixed cost per unit will be same…

Answered: The Sizemore Company recently sold…

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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The Sizemore Company recently sold 2,500 units for $100 each; reported total variable costs of $162,500 and a net income of $47,500. If the company's price per unit increased by $5 and its volume decreased by 250 units, what would be the company's net income?