Question
Victory Video Games reported the following for 2015: Unit sales – 25,000 Unit sales price -...
Victory Video Games reported the following for 2015:
Unit sales – 25,000
Unit sales price - $300
Variable cost per game - $80
Fixed costs - $350,000
1)Calculate the net operating income for 2015.
2)Victory is considering reducing the sales price by $25, which
should result in an increase
of 15% more sales. Calculate the net operating income under this
proposal.
3)Was the reduction in sales price a good idea? Explain.
Note: I know this is a lot, but I'am DROWNING here. Will give a
great rate and I seriously would appreciate it.
Homework Answers
Answer #1
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