Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Income Statement ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following
Income Statement
ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019.
Advertising expense | $24,050 |
Depreciation expense (on service van) | 16,240 |
Income taxes expense | 15,150 |
Interest expense | 10,100 |
Rent expense | 58,400 |
Insurance expense | 11,900 |
Salaries expense (for administrative personnel) | 195,600 |
Service revenue | 933,800 |
Supplies expense | 66,400 |
Utilities expense | 26,100 |
Wages expense (for service technicians) 448,300 If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started