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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 Divisions
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 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below: (Do not round Intermediate calculations.) Case Goods $1,600,000 Upholstery $400,000 Sales Less cost of goods sold: 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) 1,000,000 240,000 $360,000 240,000 60,000 $100,000 60,000 52,000 248,000 50,000 52,000 $ (2,000) $ If unit sales for both divisions Increased 10%, the company would report which of the following? Multiple Choice A $52.000 increase in net income for the Upholstery Division A 10% increase in total net income of the company A decline in profit for the Upholstery Division. A net income for the Upholstery Division of $9.000
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