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(CMA) The income statement for Davann Co. presented below shows the operating results for the fisca year just ended. Davann had sales of 1,800 tons
(CMA) The income statement for Davann Co. presented below shows the operating results for the fisca year just ended. Davann had sales of 1,800 tons of product during that year. The manufacturing capacity of Davann's facilities is 3,000 tons of product. Revenues $900,000 Variable costs: Manufacturing $315,000 Nonmanufacturing 180.000 495,000 Contribution margin 405,000 Fixed costs: Manufacturing 90,000 Nonmanufacturing 157.500 247.500 {:[" Operating income "],[" Income taxes "(40%)]:} {:[157","500],[63.000]:} Net income $94.500 a. If the sales volume is estimated to be 2,100 tons for next year, and if the selling price and costbehavior patterns remain the same next year, how much net income does Davann expect to earn next year? b. Assume Davann estimates the
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