15 cvp and changes in the business environment
case iii: vargo’s principal supplier of raw materials has just announced a price increase. the higher cost is expected to increase the variable cost of camcorders by $25 per unit. management decides to hold the line on the selling price of the camcorders. it plans a cost-cutting program that will save $17,500 in fixed costs per month. vargo is currently realizing monthly net income of $80,000 on sales of 1,400 camcorders.
question: what increase in units sold will be needed to maintain the same level of net income?

On june 1 of the current year, chad wilson established a business to manage rental property. he completed the following transactions during june: opened a business bank account with a deposit of $28,000 from personal funds. purchased office supplies on account, $2,690. received cash from fees earned for managing rental property, $7,390. paid rent on office and equipment for the month, $3,310. paid creditors on account, $1,230. billed customers for fees earned for managing rental property, $6,130. paid automobile expenses (including rental charges) for the month, $740, and miscellaneous expenses, $370. paid office salaries, $2,330. determined that the cost of supplies on hand was $1,590; therefore, the cost of supplies used was $1,100. withdrew cash for personal use, $2,210. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300) answer

Reagan corporation is a wholesale distributor of truck replacement parts. initial amounts taken from reagan's records are as follows:

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: