Eastwood Corporation manufactures numerous products, one of which is called Beta96. The company has provided the following data about this product: Unit sales (a) 60,000 Selling price per unit$88.00 Variable cost per unit$53.00 Traceable fixed expense$1,980,000 ?Management is considering decreasing the price of Beta96 by 8%, from $88.00 to $80.96. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 60,000 units to 66,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Beta96 earn at a price of $80.96 if this sales forecast is correct?
A. $1,677,600
B. $1,845,360
C. ?$302,400
D. ?$134,640
Answer: D
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Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should be rejected?
A. The details of most recorded transactions are not available after a specified period of time. B. Management has a reputation for consulting with several accounting firms about significant accounting issues. C. It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements. D. Internal control activities requiring segregation of duties are subject to management override.
Explain the purpose of the PCAOB
Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is A) effective if an innocent third party accepts the check
B) effective to the degree that it matches Caleb's genuine signature. C) effective to the extent that Downtown Bank debits Caleb's account. D) not effective.
What are the general limits or floors placed on the deduction for eligible personal casualty losses?
What will be an ideal response?