2 5 . During 201 3 , Teko, Inc. reported revenues of $891,640 and profits of $91

Question

25.

During 2013, Teko, Inc. reported revenues of $891,640 and profits of $91,486. Fixed costs were $332,043 and 44,582 units were sold. If costs and prices are expected to stay the same in 2012, and Bonzai expects to sell 45,000 units, what will be the company

25.

During 2013, Teko, Inc. reported revenues of $891,640 and profits of $91,486. Fixed costs were $332,043 and 44,582 units were sold. If costs and prices are expected to stay the same in 2012, and Bonzai expects to sell 45,000 units, what will be the company

Explanation / Answer

First we need to calculate price per unit and variable cost per unit :

Price per unit = 891640/44582

=$20 per unit

Variable cost per unit= (891640-91486-332043)/44582

=$10.50

company

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