Fundamental Managerial Accounting Concepts with Access
Fundamental Managerial Accounting Concepts with Access
7th Edition
ISBN: 9781259683770
Author: Edmonds
Publisher: MCG
Question
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Chapter 3, Problem 14ESB

a)

To determine

The amount of extra units should it sell to justify the decrease in the price.

Given information:

Company H manufactures a product, which has a variable cost of $27 per unit and the price of sale is $72 per unit. The yearly fixed cost of the company costs $810,000. The company had a net income of $360,000 during last year. The management is planning to decrease the price of sale to $67 per unit.

b)

To determine

The number of units the firm should sell to gain the desired income.

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Fundamental Managerial Accounting Concepts with Access

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