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Please see table below: How much will income increase if the sales go up by 250 units? ( ignore taxes .) How much will income
Please see table below:
How much will income increase if the sales go up by 250 units? ( ignore taxes .)
How much will income increase if the store expects sales to go up by $25,000? (ignoring taxes).
Change in net income = change in unit sales x unit CM. Since CM per unit = $200, then 250 units x $200 = ???
Change in net income = dollar change in sales x CM ratio. Change in net income = ???
Total Sales (1,000 units) | $500,000 |
Variable Costs | $300,000 |
Fixed Costs | $150,000 |
Tax Rate | 25% |
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