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The unit data for a product are:
(a) selling price 12
(b) variable cost 6.
If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?
Suggested Answer: D
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34 comments · newest first
JO
Jose
12 months ago
Totally agree, 0.4875 seems right!
TE
Teri
12 months ago
Wait, are we sure about those calculations?
PR
Providencia
1 year ago
I think the profit/volume ratio is around 0.4875.
AP
Apolonia
1 year ago
Variable cost rises to 6.75 with that increase.
AS
Ashanti
1 year ago
Selling price goes to 10.8 after 10% off.
AR
Ariel
1 year ago
I feel like I’ve seen a question like this before, but I can't remember the exact formula for the profit/volume ratio. I hope I can figure it out during the exam!
JE
Jesus
1 year ago
If I recall correctly, after reducing the selling price and increasing the variable cost, we need to recalculate the new profit first. I hope I did that right!
LA
Laurel
1 year ago
I think the profit/volume ratio is calculated by taking the profit per unit divided by the selling price, but I’m a bit confused about the percentage changes.
OL
Olive
1 year ago
I remember we did a similar question in class about profit margins, but I'm not sure how to adjust the costs and prices correctly here.
ST
Stephen
1 year ago
This question seems straightforward. I think the answer is C, since both installation/acceptance and a right of return would indicate that delivery has not occurred.
BU
Bulah
1 year ago
I feel like the refurbishment could help BBB's image and attract more customers, but would it really have a long-term impact compared to external factors like competition?
HE
Herman
1 year ago
Okay, I've got this. The description fits Kismet perfectly - it's the go-to tool for war driving, detecting rogue APs, and analyzing wireless network data. I'm confident Kismet is the right answer here.
DO
Dortha
1 year ago
I think the answer has to be about balancing strategic and tactical goals, right? I remember practicing a similar question.
DE
Delmy
1 year ago
I hope the correct answer isn't '42' because that's the only number I know how to calculate. Guess I'll have to put my math hat on for this one.
GI
Gianna
1 year ago
C) 0.4875
VA
Vanesa
1 year ago
B) 0.5
LI
Lili
1 year ago
A) 0.375
OS
Osvaldo
2 years ago
Wait, is this a trick question? I feel like I'm about to fall into a 'profit/volume' ratio black hole. Time to use my best logical thinking skills.
SH
Shakira
1 year ago
D) 0.542
EL
Elvera
1 year ago
C) 0.4875
MI
Mirta
1 year ago
B) 0.5
CE
Cecil
1 year ago
A) 0.375
JA
Jamey
1 year ago
D) 0.542
MO
Mozell
1 year ago
C) 0.4875
RO
Rory
1 year ago
B) 0.5
EV
Evangelina
1 year ago
A) 0.375
IZ
Izetta
2 years ago
I bet the exam creator is just trying to trip us up with all these percentages. But no worries, I've got this! Profit/volume ratio, here I come.
JE
Jeanice
2 years ago
Okay, so the selling price is reduced by 10%, and the variable cost is increased by 12.5%. Time to break out the calculator and crunch some numbers!
TO
Tommy
1 year ago
I think the revised profit/volume ratio is 0.4875.
AN
Anglea
1 year ago
Let's calculate the new profit/volume ratio.
BE
Bette
2 years ago
Hmm, let's see. With the given information, I need to recalculate the profit/volume ratio. This seems like a straightforward math problem, but I better double-check my work.
CO
Cordelia
2 years ago
I'm not sure, but I think I agree with Samira. The answer might be C) 0.4875.
RO
Roy
2 years ago
I disagree, I believe the answer is D) 0.542.
SA
Samira
2 years ago
I think the answer is C) 0.4875.