question 27

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 18,000 and 2.450 units, respectively. The company's most recent financial statements are shown below (Do not found intermediate calculations.) $1,915,000 5490,000 Sales less 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) 1,195,000 285,000 $ 415,000 294,000 73,500 $122,500 72,000 67.000 $ 296,000 61,250 67,000 $(5,750) If unit sales for both divisions increased 10%, the company would report which of the following? Monut sales for both dirons increased on the company would report which of the following A567.000 income for the holy Dinion A 10% in total net income of the company A decline in prelit for the Upholstery Dion Anet income for the Upholstery Division of $7725 & To 7 00 9 o vo T T Y Y U o P [ 1 G J K L B N M 1