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Hancock Company manufactures and sells two lines of furniture, case goods and upholstery. During the most recent accounting period, the Case Goods and Upholstery
Hancock Company manufactures and sells two lines of furniture, case goods and upholstery. During the most recent accounting period, the Case Goods and Upholstery Divisions sold 17,000 and 2,300 units, respectively. The company's most recent financial statements are shown below: (Do not round intermediate calculations.) Sales Lean cost of goods soldi Unit-level production cost Depreciation, production equipment Gross margin Less operating expenses Unit-level selling and administrative costs Corporate-level facility expenses (fixed) Net income (loss) Case Goods $1,810,000 Upholstery $460,000 1,130,000 276,000 270,000 $410,000 69,000 $115,000 68,000 57,500 62,000 62,000 $ 280,000 $ (4,500) If unit sales for both divisions increased 10%, the company would report which of the following?
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