Answer:
Answers are 1. $95.000 2. $42.500 3. $ 50.000 4. $59.600
Explanation:
In each case you have to replace the data with the given information
1 If unit sales increase 15%
Units price Total
Revenue 20,000.00 17.25 345,000.00
Variable Man 20,000.00 9.00 (180,000.00)
Contribution margin 20,000.00 8.25 165,000.00
Fixed expenses 20,000.00 3.50 (70,000.00)
Net income 95,000.00
2 If price decreases by $1.5 and units sold increases by 25%
Units price Total
Revenue 25,000.00 13.50 337,500.00
Variable Man 25,000.00 9.00 (225,000.00)
Contribution margin 25,000.00 4.50 112,500.00
Fixed expenses 25,000.00 2.80 (70,000.00)
Net income 42,500.00
3 If price increases by $1.5 and fixed expenses by $20.000
Units price Total
Revenue 20,000.00 16.50 330,000.00
Variable Man 20,000.00 9.00 (180,000.00)
Contribution margin 20,000.00 7.50 150,000.00
Fixed expenses 20,000.00 5.00 (100,000.00)
Net income 50,000.00
4 Units price Total
Revenue 18,000.00 16.80 302,400.00
Variable Man 18,000.00 9.60 (172,800.00)
Contribution margin 18,000.00 7.20 129,600.00
Fixed expenses 18,000.00 3.89 (70,000.00)
Net income 59,600.00
