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At what level of sales would the company's net income be the same under either approach? Current Approach Automated Approach Sales $1,980,000 $1,980,000 Variable costs
At what level of sales would the company's net income be the same under either approach?
| Current Approach | Automated Approach | |||
| Sales | $1,980,000 | $1,980,000 | ||
| Variable costs | 1,584,000 | 1,089,000 | ||
| Contribution margin | 396,000 | 891,000 | ||
| Fixed costs | 297,000 | 712,800 | ||
| Net income | $99,000 | $178,200 |
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
