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15. Presented is Ace Company's Contribution Income Statement: ACE COMPANY Contribution Income Statement For the Month Ending January 31, 2017 $200,00 Sales Less variable costs:
15. Presented is Ace Company's Contribution Income Statement: ACE COMPANY Contribution Income Statement For the Month Ending January 31, 2017 $200,00 Sales Less variable costs: $50,00 Direct materials Direct labor 20,000 Variable factory overhead 60,000 Variable S&A 12,00 (142,000 expenses Contribution margin Less fixed costs: $58,000 Factory overhead 13,000 Fixed S&A expenses 12,000 (25,000) Net income 33,000 Based on the contribution margin above, if ACE Company had $100,000 increase in sales, profit would increase by: A) $35,000 B) $29,000 C) $39,000 D) $28,000 16. Ken Corporation is selling its product at unit price of $15, variable cost per unit is $7, fixed cost is $12,000 and it is subjected to 40 percent tax rate (includes federal and state income tax). The desired after tax profit is $3,000, the number of units required to be sold is: A) 2,125 units B) 1,875 units C) 2,152 units D) 1,500 units
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