Practice Assignment Gradebook URIUN DU signment CALCULATOR FULI SCREEN PRINTER V

Question

Practice Assignment Gradebook URIUN DU signment CALCULATOR FULI SCREEN PRINTER VERSION1 BACK NEXT Multiple Choice Question 129 Hayduke Corporation reported the following results from the sale of 5000 units in May: sales $300000, variable costs $180000, fixed costs $90000, and net wh income $30000. Assume that Hayduke increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? O 4750. O 4600. O 5000. O 4444. Question Attempts: O of 1 used SAVE FOR LAIR SUBMIT ANSWER

Explanation / Answer

Current selling price=(300,000/5000)=$60

Let x units be sold

Hence

27x-90000=30000

Hence x=(30000+90000)/27

which is equal to

=4444 units(Approx)[Total fixed cost do not change with change in units].

Sales(60*1.05)*x units $63x Less:VC(180,000/5000)*x ($36x) Contribution margin $27x Less:FC ($90000) Net income required $30000

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