Revenue to fixed cost and profit

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The smith company made and sold 10,000 metal tables last year. When output was between 5,000 and 10,000 tables, its average variable cost was $24. In this output range, each table contributed 60% of its revenue to fixed cost and profit.

A. What was the price per table? B. If the Smith Company increases its price by 10%, how many tables will it have to sell next year to obtain the same profit as last year. C. If the Smith Company increases its price by 10%, and if its average variable cost increases by 8% as a result of wage increases, how many tables will it have to sell next year to obtain the same profit as last year?

Reference no: EM13887771

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