Mrs. Rafter has supplied the following data for her small business:
Selling price....................... $10 per unit
Variable expenses.............. $6 per unit
Rent.................................... $400 per week
Salaries............................... $600 per week
Other fixed expenses......... $200 per week
121. If 500 units are sold in a week, the net operating income (loss) would be: A) $1,800 B) $(2,000) C) $2,000 D) $800
122. If sales commissions $(1.00 per unit) are discontinued in favor of a $300 increase in salaries, the break-even point in units would: A) increase B) decrease C) remain the same D) none of these
SOLUTION
SOLUTION
