Woodley Corporation management has budgeted the following amounts for its next fiscal year:
| Total fixed expenses | $500,000 |
| Sale price per unit | $1,000 |
| Variable expenses per unit | $600 |
Requirements:
| 1. | If Woodley Corporation can reduce fixed expenses by $20,000, how will break-even sales in |
units be affected?
| 2. | If Woodley Corporation spends an additional $15,000 on advertising, sales volume should |
increase by 1,000 units. What effect will this have on operating income?
| 3. | If Woodley Corporation can reduce fixed expenses by $50,000, by how much can variable |
expenses per unit increase and still allow the company to maintain the original break-even sales in units?
| 4. | If fixed expenses increase by 20%, to maintain the original break-even sales in units, what |
would be the sale price per unit have to be?
Eclipse Paths for Total and Annular Eclipses 2001–2020
The Do's and Dont's of Stress Management
Hospitalization per year
Overfished per year
Total Fertility Rate in Japan: Actual versus Forecast
Dragon Chinese new year 2023