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Carrolton, Inc

question 161

Essay

Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit, and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually.
?The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?


Definitions:

Profit Making

involves activities or strategies implemented by businesses or individuals to generate financial gain or increase earnings.

Classroom Discussions

Structured conversations among students and instructors within an educational setting designed to enhance learning through shared ideas.

Participation

The act of taking part in an activity or event; involves engagement and contribution from individuals in a group or a process.

Culturally Appropriate

Refers to behaviors, practices, or interventions that are in harmony with the cultural beliefs, practices, and needs of individuals or communities.

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