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6. Sales revenue (2,000 units * $50 per unit) $100,000 Cost of goods sold: Variable (2,000 units * $20 per unit) (40,000) Fixed (9.000)
6. Sales revenue (2,000 units * $50 per unit) $100,000 Cost of goods sold: Variable (2,000 units * $20 per unit) (40,000) Fixed (9.000) Gross Margin 51,000 Administrative Salaries (13,000) Sales office Depreciation (4,000) Sales supplies (2,000 units *$3 per unit) Net Income Using the income statement above, if sales increased by 20%, (1) What percent will net income increase? (2) How much will the new net income be? (6,000) $28,000
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