Author Question: Kydell Corporation reported the following results from the sale of 6,000 units in March: sales ... (Read 17 times)

emoedee · **on:** Feb 5, 2023

Question 1

The selling price of a unit is $20 and the variable product cost per unit is $14. In addition, a sales commission of 5% is paid on each sale. If the variable product cost per unit increases by 1%, what will be the new contribution margin per unit?
◦ $4.86
◦ $5.10
◦ $6.00
◦ $5.16

Question 2

Kydell Corporation reported the following results from the sale of 6,000 units in March: sales $300,000, variable costs $180,000, fixed costs $90,000, and operating income $30,000. Assume that Kydell increases the selling price by 10% on April 1. How many units will have to be sold in April to maintain the same level of operating income?
◦ 4,800
◦ 6,000
◦ 5,160
◦ 5,400

RodrickHac · **Reply #1 on:** Feb 5, 2023

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