Suppose Company A places an order with Company B on May 12. On May 14, Company B ships the ordered goods to Company A with terms
1 answer:
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Answer:
"Decrease by 250" is the appropriate response.
Explanation:
The given values are:
Revised fixed cost,
= $150,000
Current selling price,
= $100
Current variable cost,
= $60
Current contribution will be:
=
=
=
Now,
The revised BEP will be:
=
On substituting the values, we get
=
=
hence,
=
=
Thus the above is the correct answer.