me third question: In 2020, Al-Naw company sold 1,200,000 units of i- oduct at a selling price of 32 dol er unit, and the variable costs per mounted to 22 dollars, and the fix osts for the company's fiscal yea mounted to 10,000,000 dollars. \

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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The third question: In 2020, Al-Nawras
Company sold 1,200,000 units of its
product at a selling price of 32 dollars
per unit, and the variable costs per unit
amounted to 22 dollars, and the fixed
costs for the company's fiscal year
amounted to 10,000,000 dollars. What
is the contribution margin? operating
income? Did the company make profits or
losses?
Fourth question: A new manager was
appointed for Al-Nawras Company in
2021 and this manager took a number
of measures that led to an increase in
production to 1,500,000 and an increase
in the variable cost per unit by 25% over
the previous year, and an increase in
fixed costs by 50% over the previous
year, and the price of Selling for $37.
(The information for the previous year
is the data for the third question) Is the
manager's decision correct? Did his
decision increase profits or reduce losses?
Explain that
only solve Q4
Transcribed Image Text:The third question: In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per unit, and the variable costs per unit amounted to 22 dollars, and the fixed costs for the company's fiscal year amounted to 10,000,000 dollars. What is the contribution margin? operating income? Did the company make profits or losses? Fourth question: A new manager was appointed for Al-Nawras Company in 2021 and this manager took a number of measures that led to an increase in production to 1,500,000 and an increase in the variable cost per unit by 25% over the previous year, and an increase in fixed costs by 50% over the previous year, and the price of Selling for $37. (The information for the previous year is the data for the third question) Is the manager's decision correct? Did his decision increase profits or reduce losses? Explain that only solve Q4
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