Portmain Industries Management Has Budgeted the Following Amounts for Its

question 10

Multiple Choice

Portmain Industries management has budgeted the following amounts for its next fiscal year:

Increase competition in the market has forced management to consider a price reduction of 10%.In order to maintain the same targeted operating income of $30,000 by what percentage must Portmain increase the number of units sold?

• A)increased by 100%
• B)increased by 40%
• C)increased by 50%
• D)decreased by 100%

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Definitions:

Raw Materials Inventory

Raw Materials Inventory accounts for the cost of materials that have been purchased but not yet processed or used in production on the balance sheet.

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.

Factory Overhead

Expenses related to operating a factory that cannot directly traced to specific units produced, including utilities, depreciation, and maintenance.

Direct Labor

The labor cost of workers directly involved in the production of goods or the provision of services, considered a variable cost.