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A company wants to evaluate the effects of a reduction in material cost of 2% and an increase in sales of 13% on a product
A company wants to evaluate the effects of a reduction in material cost of 2% and an increase in sales of 13% on a product with the following current characteristics: labor costs of $1,350,000, material costs of $4,200,000, overhead of $750,000, and sales of $7,000,000. What are the effects on net income with a 2% reduction in material costs? What is the effect with a 13% increase in sales? Part 2 The change in net income due to the reduction in material costs is $__________. (Enter your response as a whole number.) Part 3 The change in net income after the 13% increase in sales is $________ (Enter your response as a whole number.)
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