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The following income statement is provided for XYZ Co for 20X7: Sales Revenues (2500 units @ $20 per unit) $50,000 Cost of Goods Sold 12,500
The following income statement is provided for XYZ Co for 20X7: Sales Revenues (2500 units @ $20 per unit) $50,000 Cost of Goods Sold 12,500 Variable (2500 units @$5 per unit) Fixed 5.000 Total CGS 17,500 Selling and Administrative Expenses: Administrative Salaries 6,000 Depreciation Expense 4,000 Shipping Expense (2500 units@$3 per unit) 7,500 Total S, G&A Expense 17,500 NET INCOME $15,000 A. From the information provided above, prepare a CONTRIBUTION MARGIN FORMAT INCOME STATEMENT. B. Calculate the degree (or magnitude) of operating leverage. C. If the number of units increases by 20%, what will the company's net income be
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