Sales revenue (2,000 units * $50 per unit) Cost of goods sold: Variable (2,000 units * $20 per unit) Fixed Gross Margin $100,000 (40,000) (9,000) Administrative Salaries Sales office Depreciation Sales supplies (2,000 units *$3 per unit) Net Income 51,000 (13,000) (4,000) (6,000) $28,000 Using the income statement above, if sales increased by 10%, (1) what percent will net income increase? (2) How much will the new net income be? Chef Company makes and sells pre-packed lunches. The variable cost of each lunch is $5. The lunches are sold for $10 each. Fixed operating expenses amount to $10,000. Using the space below, prepare a break-even graph. Indicate the following on the graph: (a) fixed cost, (b) total cost, (c) total revenue, (d) loss, (e) breakeven point, and (1) profit area. How is managerial accounting different from financial accounting? Cartman Company makes a Cheezy-poofs that sells for $5 a bag. Each bag has a variable cost of $1.25. Cartman has a total fixed costs of $5,000. At budgeted sales of 30,000. What is the margin of safety (in percentage)