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Below is an income statement for Tori Spelling Company: Sales (40,000 x $10) Variable costs (40,000 x $2.50) Contribution margin (40,000 x ?) Fixed costs
Below is an income statement for Tori Spelling Company: Sales (40,000 x $10) Variable costs (40,000 x $2.50) Contribution margin (40,000 x ?) Fixed costs Net Income $400,000 (100,000) $300,000 (50,000) $250,000 21. How many units would Tori Spelling need to sell to earn a net income of $40,000 after tax (income tax = 60%)? a. 27,500 b. 20,000 c. 12,000 d. 15,555 22. Using one of the short-cut tricks that you learned, assuming that Tori Spelling increased sales by 20 percent, what would the new net income be? a. $300,000 b. $310,000 c. $330,000 d. $360,000 23. Go back to the original data, and using the other short-cut trick that you learned, assuming that Tori Spelling increased the sales price by 20 percent, what would the new net income be? a. $300,000 b. $310,000 c. $330,000 d. $360,000
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