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ACC/310 ACC/310 WEEK 1 -CVP ANALYSIS AND PRICE CHANGES -PROBLEM 3-36 -COST ACCOUNTING I -ANSWER KEY

ACC/310 ACC/310 WEEK 1 -CVP ANALYSIS AND PRICE CHANGES -PROBLEM 3-36 -COST ACCOUNTING I -ANSWER KEY
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ACC/310 WEEK 1 -CVP ANALYSIS AND PRICE CHANGES -PROBLEM 3-36 -COST ACCOUNTING I

3-36. CVP Analysis and Price Changes: Argentina Partners.

Required:

a)    Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.

b)    Compute the volume of sales and the dollar sales necessary to provide the 6 percent increase in profits, assuming that the maximum price increase is implemented.

c)    If the volume of sales were to remain at 60,000 units, what price would be required to attain the 6 percent increase in profits?

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