Answer the following questions.
 

5. (A) Number of Units: 2,000 4,000 Total Cost: Variable $8,000 $16,000 Fixed $8,000 $8,000 Cost per unit: Variable $4.00 (a) Fixed $4.00 (b) Looking at the table above, what is (a): (B) and (b): UNITS SOLD 100 200 300 400 Cost #1 $12 per unit $6 per unit $4 per unit $3 per unit Cost #2 $5 per unit $5 per unit $5 per unit $5 per unit Determine whether Cost #1 and Cost #2 is variable, fixed, or mixed and why Cost #1: Cost #2: Why: Why: 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) (6,000 Net Income $28,000 Using the income statement above, if sales increased by 20%, (1) What percent will net income increase by? (2) How much will the new net income be?