Question
A company has the following financial results for the year 2020: Sales Revenue $100,000 Variable Costs $70,000 Contribution Margin $30,000 Fixed Costs $20,000 Net Income
A company has the following financial results for the year 2020:
| Sales Revenue | $100,000 |
| Variable Costs | $70,000 |
| Contribution Margin | $30,000 |
| Fixed Costs | $20,000 |
| Net Income | $10,000 |
What is the company's expected net income for 2021 if it expects sales to be 14% higher in 2021 than in 2020?
(Make sure to calculate the new total expected net income for 2021 and not just the change in net income. Round your final answer to the nearest dollar. Round intermediate calculations to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Multicolumn Journal
Authors: Claudia Gilbertson
11th Edition
1337565423, 9781337565424
