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Sales C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 250 bikes is
Sales C-Cubed makes bikes. It's standard bike is called the Speed Racer. It's Contribution Margin Income Statement for 2020 when it sold 250 bikes is as follows: $187,500 Less: Variable Expenses 46.250 Contribution Margin 141,250 Less: Fixed Expenses 27,000 Net Operating Income $114,250 In 2021, C-Cubed is thinking that it can increase its sales to 325 if it takes the following actions: 1) cuts its sales price by $100 per bike and 2) switches to a more fixed pay structure for its sales people by eliminating the $25 per unit sales commission and increasing its selling salaries by $5,000. What would be profit impact of these changes? Multiple Choice $21,125 Increase $10,625 increase $13,000 Increase $11,125 increase
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