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Unformatted text preview: (OL) when sales are 6,000 units. (1) OL = ______ = ___________ = iii) If sales increase by 10%, how much will Net Income increase? (3) In % terms? In $? What is the new NI? 7. Calculate the selling price that will be needed if Waldo Company desires a target income next year of $50,400 and believes it can sell 6,400 units.Variable and fixed costs would be the same as this year. (3) 8. If the selling price was increased by 10%, Waldo Co. expects sales volume would decrease by 5%, but only if advertising was increased by $20,000. Required: Prepare a mini-income statement to calculate the revised income statement and indicate whether you think Waldo should pursue this option. ( 4) 9. If Waldo Co. wants to earn a target income of 15% of Sales, what must there sales level in $? (3)...
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This note was uploaded on 03/04/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.
- Winter '12