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Steven Herb Chambers of Boston Company created budgeted financials statements. The expected income statement is below: Sales Revenue (2,700 units * $14 sales price) Total
Steven "Herb" Chambers of Boston Company created budgeted financials statements. The expected income statement is below: Sales Revenue (2,700 units * $14 sales price) Total Variable Expenses (2,700 X $7 per unit) Contribution Margin Fixed Expenses Net Income $ 37,800 (18,900) 18,900 (9,450) $ 9,450 The Company is experimenting with new engineering techniques and believes it can reduce variable cost to $5.0 per unit and significantly improve the product. The innovations would double fixed costs but the company expects to be able to increase sales to 4,000 units. If this strategy is pursued the company's budgeted net income will: Multiple Choice increase by $7,650. decrease by $1,450. O increase by $17,100. o oo decrease by $2,750
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