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Jensen Company has the following situation:Sales Price: $40 per unitVariable Cost Per Unit: $25 per unitFixed Costs: $20,000Units Sold: 4,000Jensen is considering lowering the price to $35 per unit which she believes would increase units sold to 4,750.Required• Calculate the net income under the current situation and then again with the changes.• Should Jensen lower the price? Support your answer.Current Net Income ____________________________________________Net Income With Changes_______________________________________
The maximum possible loss method Under this method, a table is set up to compute the amounts payable to each partner. The results of the computation may be then posted into the
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