Question
TB MC Qu. 6-43 (Algo) Hancock Company manufactures and sells... Hancock Company manufactures and sells two lines of furniture, case goods and upholstery. During the
TB MC Qu. 6-43 (Algo) Hancock Company manufactures and sells... 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 16,400 and 2,210 units, respectively. The company's most recent financial statements are shown below: (Do not round intermediate calculations.) Case Goods Upholstery Sales $ 1,747,000 $ 442,000 Less cost of goods sold: Unit-level production cost 1,091,000 265,200 Depreciation, production equipment 261,000 66,300 Gross margin $ 395,000 $ 110,500 Less operating expenses: Unit-level selling and administrative costs 65,600 55,250 Corporate-level facility expenses (fixed) 59,000 59,000 Net income (loss) $ 270,400 $ (3,750 ) If unit sales for both divisions increased 10%, the company would report which of the following? Multiple Choice A $59,000 increase in net income for the Upholstery Division A 10% increase in total net income of the companyIncorrect A decline in profit for the Upholstery Division A net income for the Upholstery Division of $8,405
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