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 17% 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.)
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Accounting Principles
Authors: Jerry J Weygandt
10th Edition
1118009282, 9781118009284
