16 Current sales volume is 300 units variable costs are S10

16. Current sales volume is 300 units, variable costs are S10 per unit, and fixed costs are $20 per umi Current selling price is $25. If you reduce the price to $23, sales volume will increase from 30o 330 units (330 units is in the relevant range). How much will the profit change in the short rün o reduce the price to $23 A. decrease by $810 B. decrease by $210 C no change D. increase by $90 E. increase by $450 17. Which of the following is a variable cost: A. Depreciation on sales office equipment B. Sa C. Rent for the sales office D. Both A and B are variable costs les manager\'s bonus, which is equal to a fixed percentage (e.g., 4.1%) of sales revenue E. All of the above are variable costs because they can vary from year to ye ar 18. Price is S5, variab How much will total profit change in that the new sales volume is in the relevant range. le costs are $4 per unit, and fixed costs are $2 per unit (at current sales volume). the short term if we sell 10 more units at the same price? Assume A not enough information need to know the original sales volume B. decrease by S10 C. increase by S10 D. increase by $30 E. increase by S50 19. Which of the following is a period cost: A. direct labor wages (S20 per hour) B. sales staff wages (S15 per hour) C. monthly salaries of production supervisors D. annual rent for the factory building E. both C and D are period costs

Solution

As per chegg guidelines when there are more than one question then we have to answer first question. 16)Calculation of profit in case of 300 units: Particulars Amount sales (300*25) 7500 Less: Variable expenses (300*10) 3000 Contribution 4500 Less: Fixed expeses(300*20) 6000 Profit -1500 Calculation of profit in case of 330 units: Particulars Amount sales (330*23) 7590 Less: Variable expenses (330*10) 3300 Contribution 4290 Less: Fixed expeses 6000 Profit -1710 Decrease in profit= -1710-(-1500)=-210 So correct answer is B) decrease by $210