Jazz Products Has the Following Information Available for the Month

question 49

Multiple Choice

Jazz Products has the following information available for the month of March:
$\begin{array}{lr}\text { Sales (4000 units) } & \$ 40000 \\\text { Variable costs } & 18000 \\\text { Fixed costs } & 5000 \\\text { income } & \$ 17000\end{array}$
The company's manager is considering several options to increase net income.By what amount do sales dollars need to increase in order for net income to increase to $25 000?

• A) $14 545
• B) $25 000
• C) $ 3000
• D) $18 820

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Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

No Further Deposits

A condition in financial agreements where an individual is not required or allowed to make additional contributions beyond the initial or specified amounts.

Deposited

Referring to money that has been placed into a financial account for safekeeping or savings.

Time-Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.