C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 350 bikes is as follows: Sales Less: Variable Expenses $175,000 64,750 Contribution Margin Less: Fixed Expenses Net Operating Income In 2021, C-Cubed is thinking that it can increase its sales to 375 if it takes the following actions: 1) cuts its sales price by $100 per bike and 2) switches to a more fixed pay structure for its sales people by 110,250 27,000 $83,250 eliminating the $35 per unit sales commission and increasing its selling salaries by $5,000. What would be profit impact of these changes? Multiple Choice $21,500 decrease $25,250 decrease $20,625 decrease $30,000 decrease

C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 350 bikes is as follows: Sales Less: Variable Expenses $175,000 64,750 Contribution Margin Less: Fixed Expenses Net Operating Income In 2021, C-Cubed is thinking that it can increase its sales to 375 if it takes the following actions: 1) cuts its sales price by $100 per bike and 2) switches to a more fixed pay structure for its sales people by 110,250 27,000 $83,250 eliminating the $35 per unit sales commission and increasing its selling salaries by $5,000. What would be profit impact of these changes? Multiple Choice $21,500 decrease $25,250 decrease $20,625 decrease $30,000 decrease

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...

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