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Wilco sells pencils for $20 per unit, has variable manufacturing costs of $5 per unit sold, variable selling costs of $1 per unit sold, total fixed manufacturing overhead of $40,000, and total fixed selling costs of $10,000. Wilco sells 11,000 units in December. If Wilco expects a 5% decrease in sales in January, what change in income should Wilco expect?

Wilco sells pencils for $20 per unit, has variable manufacturing costs of $5 per unit sold, variable selling costs of $1 per unit sold, total fixed manufacturing overhead of $40,000, and total fixed selling costs of $10,000. Wilco sells 11,000 units in December. If Wilco expects a 5% decrease in sales in January, what change in income should Wilco expect?

FINANCIAL ACCOUNTING
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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Wilco sells pencils for $20 per unit, has variable manufacturing costs of $5 per unit sold, variable selling costs of $1 per unit sold, total fixed manufacturing overhead of $40,000, and total fixed selling costs of $10,000. Wilco sells 11,000 units in December. If Wilco expects a 5% decrease in sales in January, what change in income should Wilco expect? 7.4% O Some other answer O 6.6% 9.6% O 7.15%
Transcribed Image Text:Wilco sells pencils for $20 per unit, has variable manufacturing costs of $5 per unit sold, variable selling costs of $1 per unit sold, total fixed manufacturing overhead of $40,000, and total fixed selling costs of $10,000. Wilco sells 11,000 units in December. If Wilco expects a 5% decrease in sales in January, what change in income should Wilco expect? 7.4% O Some other answer O 6.6% 9.6% O 7.15%
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