Hello,
As the question states how many more tons are to be sold to maintain the same profit level, I suppose we take only the additional fixed cost incurred for the new territory ie. 61500+25x, Using this in the formula,
x = 61500+25x/225
x = 61500/200 = 307.5 Tons
Hope you find this helpful :)
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Faisal Khaleel
Bangalore
India
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Original Message:
Sent: 06-22-2019 03:47 AM
From: Yousuf Syed
Subject: CVP- Target Income
Why the answer is not 1,095 tons (A)
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Yousuf Syed
Accountant
Jeddah
Saudi Arabia
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